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agriculture & rural development Department:
Agriculture and Rural Development
PROVINCE OF KWAZULU-NATAL
�
y� Annual Report 2015/16
Publish in the Republic of South Africa
Department of Agriculture & Rural Development KwaZulu-Natal
Compiled by the Directorate: Monitoring and Evaluation
PHYSICAL ADDRESS: 1 Cedara Road, Cedara, Pietermaritzburg, 3200
POSTAL ADDRESS: Private Bag X9059, Pietermaritzburg, 3200
TELEPHONE NUMBER/S: (+27) 33 355-9100
FAX NUMBER: (+27 33 355 9122
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS: www.kzndard.gov.za
PR308/2016 ISBN: 978-0-621-44901-3
03 Annual Report_2015/16
TABLE OF CONTENTS
PART A: PERFORMANCE INFORMATIONDEPARTMENT 5 4 CONDITIONAL GRANTS 51
GENERAL INFORMATION 4.1 Conditional grants and earmarked funds received 51
2, LIST OF ABBREVIATIONS/ACRONYMS 6 4.1.1 Land Care 51
3. FOREWORD BY THE MINISTER/MEC 7 4.1.2 Comprehensive Agriculture Support Programme 52
4, REPORT OF THE ACCOUNTING OFFICER 8 4.1.3 Lima/Letsema Project grant 54
5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY 5 DONOR FUNDS 56
FOR THE ANNUAL REPORT 9 5.1.1 Donor Funds Received 56
6. STRATEGIC OVERVIEW 10 5.1.2 Rabies Programme 56
a. Vision 10 PART C: GOVERNANCE 57
b. Mission 10 1. INTRODUCTION 58
c. Values 10 2, RISK MANAGEMENT 58
z ENTITIES REPORTING TD THE MINISTER/MEC 11 3. FRAUD AND CORRUPTION 58
4, MINIMISING CONFLICT OF INTEREST 58
PART B: PERFORMANCE INFORMATION 13 5. CODE OF CONDUCT 58
1. OVERVIEW OF DEPARTMENTAL PERFORMANCE 14 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 58
1.1 Service Delivery Environment 14 z PORTFOLIO COMMITTEES 59
8. SCOPA RESOLUTIONS 59 1.2 Organizational environment 15
9. PRIOR MODIFICATIONS TD AUDIT REPORTS 63 1.3 Key policy developments and legislative changes 16
10. INTERNAL CONTROL UNIT 63 1.4 Departmental Revenue, Expenditure, and Other Specific Topics 16
11. AUDIT COMMITTEE REPORT 64
2. PERFORMANCE INFORMATION BY PROGRAMME 19 PART D: HUMAN RESOURCE MANAGEMENT 70
2.1 Programme 1: Administration 19 1. OVERVIEW OF HUMAN RESOURCES 70
2.2 Programme 2: Agricultural Development Services 25 2, HUMAN RESOURCES OVERSIGHT STATISTICS 71
2.3 Programme 3: Rural Development 30
3 TRANSFER PAYMENTS 48 PART E: FINANCIAL INFORMATION 125
3.1 Transfer payments to public entities 48 1. REPORT OF THE AUDITOR GENERAL 126
3.2 Transfer payments to all organisations other than public entities 48 2. ANNUAL FINANCIAL STATEMENTS 131
04 Annual Report_2015/16
PART A: GENERAL INFORMATION
I LIST OF ABBREVIATIONS/ ACRONYMS
AGSA Auditor General of South Africa
AO Accounting Officer
BBBEE Broad Based Black Economic Empowerment
CFO Chief Financial Officer
MEC Member of Executive Council
HOD Head of Department
PFMA Public Finance Management Act
TR Treasury Regulations
MTEF Medium Term Expenditure Framework
SMME Small Medium and Micro Enterprises
SCM Supply Chain Management
EU European Union
SITA State Information Technology Agency
SDIP Service Delivery Improvement Plan
06 Annual Report_2015/16
I FOREWORD BY THE MEC
It is with great honour and privilege that I table the Annual Report of the Department of
Agriculture and Rural Development for 2015/16 financial year, as required by the Public
Finance Management Act (PFMA) 1 of 1999, as amended.
The Department is tasked with the critical mandate of executing both agricultural and
rural development of our province. At the apex priority of this Department has been to
help reduce poverty, inequality and unemployment in the province as envisioned in the
National Development Plan (NDP), Agricultural Policy Action Plan (APAP), and Provincial
Growth and Development Plan (PGDP) among others.
The 2015/16 Annual Report of the Department of Agriculture and Rural Development,
gives a detailed account of the progress made by the department in delivering on its
mandate. The Report also highlights the challenges faced by the Department and the
steps it will be taking to deal effectively with those challenges.
During the 2015/16 financial year, KwaZulu-Natal, had continued to experience the
serious impact of drought and its accumulated effect on agricultural production and food
security. Despite this, the Department had in period review led interventions to help boost
the agricultural sector. These interventions included, the provision of input support to
farmers across the province, fast-tracking agricultural infrastructure development,
agricultural relief schemes, supporting the growth and further development of the sector.
The Department has introduced several major programmes which serve as a catalyst for
sustained agricultural reform and development. The Strategy for Agrarian Transformation
served as the guide for implementation of Departmental programmes. The strategy is
supported by four pillars which include land reform, agri-village, communal estate and
river valley which will ensure holistic agriculture production both in communal and
commercial areas.
The Department had strengthened its partnerships with organised agriculture, commod
ity associations and our communities working together for us to meet our development
goals. The Department will continue to strengthen these and other partnership as we
advance in developing a thriving agricultural sector.
MrThemba Mthembu
MEC: Agriculture and Rural Development
Date: 31 August 2016
07 Annual Report_2015/16
I REPORT OF THE ACCOUNTING OFFICER
It is with pleasure to present the 2015/16 Annual Report for the Department of Agriculture
and Rural Development as required. The highlights of performance in 2015/16 of critical
implementation programs, agriculture and Rural Development are here on expressed.
The country and the province in 2015/16 were under constraints of extreme drought
agriculturally and as such performance was adversely affected and influenced. In the
implementation of the approved, current Strategic Plan, the Department was compelled
to channel a considerable portion of its resource to drought relief support initiatives
introduced during the dry season. Despite the natural disaster, significant gains have been
made in delivering services for farmers, and rural communities of KZN.
Through Management Performance Assessment Tool the Department continued to focus
on the improved administrative process and establishment of effective and efficient
management control systems. The ideal is a functional administration system institution
alised and updated as and when is required by good governance principles.
The Rural Development of the Department continued in its endeavours and plans to make
agri-parks a reality in identified districts of the Province and the establishment of such will
be pursued to completion. Stakeholder engagement has demonstrated successful in
making cooperative governance required to deliver on this mandate smooth working
relations.
Agriculture still remains one of the key economic drivers and as such forms an important
part for economic development, rural development and ultimately poverty alleviation.
The sector has huge potential for job creation and ensuring food security. The department
in the year in question has been able to create seasonal paid part-time jobs in communi
ties where projects were rolled out. The ultimate outcome pursued is the agrarian transfor
mation of the sector in the province of KZN to ensure unlocked full agriculture potential.
Rehabilitation of degraded agricultural land remained the centre of support and initiatives
in great effort of preventing and eradication of land degradation to ensure optimal land
use. This has been achieved through the commitment of the internal departmental
professional service units. Heartfelt gratitude is expressed to all stakeholders in the form of
other government departments, entities, oversight institutions, and Chapter 9 institutions
for contribution in improved operations and success in delivering on the mandates.
Dr Siphiwe Mkhize
Head of Department
Date: 31 August 2016
08 Annual Report_2015/16
I STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT
To the best of my knowledge and belief, I confirm the following:
All information and amounts disclosed throughout the annual report are consistent.
The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the guidelines on the annual
report as issued by National Treasury.
The Annual Financial Statements (Part E) have been prepared in accordance with the
modified cash standard and the relevant frameworks and guidelines issued by the
National Treasury.
The Accounting Officer is responsible for the preparation of the annual financial
statements and for the judgements made in this information.
The Accounting Officer is responsible for establishing, and implementing a system of
internal control that has been designed to provide reasonable assurance as to the
integrity and reliability of the performance information, the human resources informa
tion and the annual financial statements.
The external auditors are engaged to express an independent opinion on the annual
financial statements.
In my opinion, the annual report fairly reflects the operations, the performance informa
tion, the human resources information and the financial affairs of the Department for the
financial year ended 31 March 2016.
Yours faithfully
Accounting Officer
Dr SF Mkhize
31 August2016
09 Annual Report_2015/16
I STRATEGIC OVERVIEW
VISION
A united, sustainable and vibrant agricultural sector with thriving rural communities in
balance with nature.
MISSION
To promote, through partnerships, sound agricultural practices that stimulate economic
growth, food security and advancement of rural communities in KwaZulu-Natal.
VALUES
In order to fulfill its mission, the endeavors of the Department are underpinned by the
following values:
• Batho Pele Principles and service orientation - Departmental officials will conduct
themselves in a manner befitting a government that is caring, dedicated and
pro-poor, influenced by the spirit of ubuntu.
• Co-Operative Governance and Strategic Partnerships - the Department commits
itself to the principles of cordial inter-governmental relations and strategic partner
ships across all spheres of society, with particular focus on business and civil society
organizations as delivery partners.
• Self-sufficiency and independence - the Department commits itself to the
promotion of self-sufficiency in all its interventions and focuses on the empowerment
of people to be more independent and entrepreneurial.
• Transformation - Department is an agent of state transformation agenda to change
the historical uneven development of the South African and KwaZulu Natal society
and its policies must reflect this character at all times.
• Financial Prudence and Resource Limitations - Department is the custodian of
public funds and its policies must promote economic use of such limited funds
to achieve efficient and effective delivery of public services. Government will always
be faced with a challenge of growing public demands and limited resources to fulfil
every obligation.
• Accountability and Transparency - Department is obligated to promote good
governance by accounting and being transparent to the public, legislature and
oversight institutions for its performance and use of public resources.
• Development and recognition - The Department's employees are recognized
as its most valuable asset and therefore it aspires to ensure the on-going
development and recognition of an effective, professional team.
10 Annual Report_2015/16
ORGANISATIONAL STRUCTURE
Mr. E. Habermann Acting CFO
Hon. T. Mthembu MEC: Department of Agriculture
& Rural Development
Dr. S. Mkhize Head of Department Accounting Officer
Mr. M.J. Mfusi Acting DOG: ADS
I ENTITIES REPORTING TO THE MEC
The table below indicates the entities that report to the MEC.
Mr. c. Boldogh DOG: Operations
Ms. J.G. Majola DOG: Corporate Service
Name of Entity Legislative Mandate Financial Relationship Nature of Operations
Mjindi Farming (Pty) Mjindi Farming (Pty) In terms of section 38
(l)(j) of the Public
Mjindi is responsible for
agricultural
development in the
northern estates of the
LTD Ltd was established
under the Companies Finance Management
Act 61 of 1973 (as Act 1 of 1999 province.
(as
amended), as a amended), Mjindi must
private company with provide written
the share capital.
11
assurance to
Department that the
entity implements good
financial management
and internal control
system before the
Department transfers
funds to the Entity.
Annual Report_2015/16
Agribusiness ADA was established
Development Agency in terms of cabinet
In terms of section 38 The agency provides
(ADA)
{l)(j) of the Public
resolution No. 79 of Finance Management
29 July 2009. The Act 1 of 1999 (as
agency draws its amended), ADA must
operational mandate provide written
from: assurance to the
i)The national policy Department that the
for Comprehensive entity implements good
Agricultural Support financial management
Programme {CASP). and internal control
ii) Land Reform policy system before the
guidelines. Department transfers
iii) Amended Trust funds to the Entity.
Deed for agribusiness
Development Agency.
12 Annual Report_2015/16
holistic agricultural
support services to
entrant farmers,
focusing mainly on
previously
disadvantaged farmers.
ADA.
PART B: PERFORMANCE INFORMATION
1. OVERVIEW OF DEPARTMENTAL PERFORMANCE
1.1 Service Delivery Environment
During the year under review, the Department pursued mandates over two critical sectors in the
province, namely, Agriculture and Rural Development. The 2015/16 year marked the end of the
strategic cycle, where priorities and outcomes pursued for the corresponding administration
were concluded. Through various priority projects, the Department provided critical services
communities across the province.
Table 1: Core Services and Products of the Department
SERVICES PRODUCTS
Agriculture Crop production, livestock farming, aquaculture, natural resources use and
management and land reform (a national competency but supported by the
Department at provincial level), extension, and care, and agricultural research.
Veterinary Animal disease control, prevention of zoonotic diseases, inspection services and
Services primary health care services.
Agriculture remains one of the most important sectors through which government has
committed to change the social and economic outlook of South Africa. In KwaZulu-Natal,
farming is one of the major contributors to the provincial economy.
Agriculture in its basic form is a business where the farmer buys inputs, uses these inputs with
her/his skills, knowledge and abilities to produce a product that he/she then sells to a market
place. Due a lack in some of these skills, knowledge and abilities including other very important
issues such as availability of finances and decision models farming is failing in the rural areas.
The lack of success in the rural areas can thus be accounted to among other factors to such as
the lack of adapted business models and principles for commercial agricultural production.
14 Annual Report_2015/16
This is further exacerbated by the fact that farmers duties relate to "farm employees" which are
not clearly defined, resulting in the lack of accountability.
Farmers lack farming skills to utilize the existing land to fullest capacity that lead to incorrect
farm usage has caused vast farm areas to experience soil erosion, thus significantly reducing
yields and profitability. Furthermore, cultural and generational beliefs result in a lack of
commitment and willingness to farm, which have resulted in the under-utilization of farming
land.
Many farmers do not keep basic accounting and farming records of farm operations. This makes
it very difficult for farmers to apply for funding to expand or improve farm operations through
investment. This further leads to farmers not being able to afford to pay for services to
successfully operate a commercial agricultural business (electricity, water, maintenance of
irrigation etc.), due to financial constraints. Cultural and generational beliefs result in a lack of
commitment and willingness to farm, which have resulted in the under-utilization of farming
land. Some farmers prefer to obtain employment in other sectors of the economy, which may
result in the abandonment of farms.
The implementation of the Occupational Specific Dispensation in respect of Legal Officers has
proven to be prejudicial in relation to the appointment of skilled and experienced legal officers
within the component. The commencing salary levels are not commensurate with the years of
experience of legal practitioners who are attempting to be employed in the public service.
Accordingly it becomes difficult to appoint experienced individuals as they are not willing to
accept the salaries being offered to them.
1.2 Organisational environment
During the reporting period the department has undergone a restructuring process of the
department so as to ensure optimal service delivery to the external clients. The structuring
process was spearheaded by the development of the Strategic Plan which set the scene for a
revised line functionary strategy. Emanating there from, was the development of Line
Functionary policies which the developed organization structure was aligned to.
15 Annual Report_2015/16
The organization structure was to provide a 5 year plan for a sustainable and vibrant agricultural
sector with the added Rural Development portfolio to ensure thriving rural communities within
the province. The structure was approved by the MEC on 23 July 2015.
The structure made provision for improved service delivery models which resulted in the
following major benefits:
• It was ensured that a single specialist competent authority would be provided for each
discipline or accountability, eliminating duplication and fragmentation of services.
• A rigid reporting line directly from Districts (where all implementation take place) to the
Head Office, where policy, co-ordination, planning, control and monitoring will take place.
• Shorter decision making processes by removing Regional Services.
The structure is in the process of being implemented.
1.3 Key policy developments and legislative changes
The Agricultural Development Policy has influenced operations in agricultural development
services. This Policy brought about major changes to the Mechanisation Programme which was
adopted by the Department a few years ago. Previously the Department owned a fleet of
tractors and implements; and provided free ploughing and planting services to farmers.
According to this Policy, the department no longer owns the fleet of tractors but the
mechanization equipment is being transferred to Communal Estates. The farmers are
encouraged to farm for themselves in order to grow in the agricultural sector. However, the
Department will repair, service and maintain the mechanization for a period of 3 years as from
2015/16. This has positively influenced the operations since the farmers are now in charge.
The Corporate Governance of ICT Framework and Charter were reviewed and approved by the
Head of Department. The Business Continuity Plan was reviewed and approved by the Head of
Department. The Information Security Management System was developed in line with ISO
27000 standards.
16 Annual Report_2015/16
A new criterion was introduced in terms of the Management Performance Assessment Tool
(MPAT) relating to the implementation of the Promotion of Administrative Justice Act within the
Department. The implementation of this criteria placed additional obligations on the
Department generally and the directorate in particular. The Department was had to nominate/
assign a PAJA coordinator, amongst others, to keep a register of its administrative decision
making areas and applicable decisions and coordinate the promotion, monitoring and evaluation
of its implementation of the PAJA. This necessitated the formation of a steering committee with
the relevant officials who are exercising legislative powers in terms of delegations given to them
in terms of certain national laws. The said officials had to also be sensitised to the requirements
of PAJA and their decisions had to be reviewed to ensure the alignment thereof with the
requirements of the Acts that they were administering as well as the requirements of PAJA.
The introduction of the Strategy for Agrarian Transformation in KwaZulu-Natal has also
necessitated the drafting of new agreements and the review of existing agreements to ensure
that they are aligned to the requirements of the policy provisions.
1.4 Departmental Revenue, Expenditure, and Other Specific Topics
1.4.1 Collection of Departmental Revenue
The table below provides the summary of the departmental receipts for 2014/15 and 2015/16
financial years by type of receipt. The total actual revenue for 2015/16 exceeded the estimated
revenue by R420 OOO or 1.8 per cent. Departmental revenue decreased from R32.267 million in
2014/15 to R23.712 million in 2015/16.
This decrease is mainly due to high proceeds under the sale of capital assets in 2014/15 due to
the proceeds for sale that took place in 2013/14 were only receipted in the 2014/15 financial
year. The department undertakes an auction of redundant assets at least annually. In essence,
this means that the 2014/15 revenue reflects the proceeds from the sale of redundant assets for
two financial years. The revenue collected for 2015/16 was over collected by R420 thousand.
Reasons for this over collection are provided by category as follows:
• Sale of goods and services other than capital assets under-collected by Rl.051 million. This
category comprises mainly of receipts relating to the laboratory samples, rendering of
academic services such as registration, tuition fees and accommodation at the department's
17 Annual Report_2015/16
agricultural colleges. The under collection is largely attributable to the drought as farmers
are sending fewer soil samples to the department's laboratories for analysis prior to planting
season.
• Interest, dividends and rent on land collected R27 OOO against the budget of R21 OOO
relating to staff debts. The budget was based on previous years' trend.
• Sale of capital assets collected an amount of R3.322 million against the budget of R3 million,
due to higher than anticipated proceeds from the sale of redundant assets.
• Transactions in financial assets and liabilities exceeded projections substantially by Rl.142
million. This relates mainly to the recovery of over payments made in previous financial
years for instance, repayment from staff debts such as salary overpayments, bursary
breached contracts, etc. It is difficult to project for this category due to its uncertain nature.
Departmental Own Receipts by main revenue category
Sale of goods and services other
than capital assets 16 981 19 520 (2 539) 19 771 18 720
Fines, penalties and forfeits
Interest, dividends and rent on
land 20 369 (349) 21 27
Sale of capital assets 3 801 10 594 (6 793) 3 OOO 3 323
Financial transactions in assets
1 051
(6)
(323)
and liabilities 500 1 784 (1 284) 500 1 642 (1 142)
TOTAL 21 302 32 267 (10 965) 23 292 23 712 (420)
18 Annual Report_2015/16
Tariff policy
The Department reviewed the fees charged for services rendered and where possible aligned
the fees with national and provincial norms. The review was done in consultation with all
relevant role players and submitted to the Provincial Treasury for approval. The approved fees
for the 2015/16 financial year was circulated for implementation with effect from 1 April
2015.The tariffs will be reviewed on an annual basis as part of the budget process and the
revised tariffs will be implemented on 1 April of every year.
Free Services
The Department does not provide free services, except extension services.
2. PERFORMANCE INFORMATION BY PROGRAMME
2.1 Programme 1: Administration
The main role of the service renders by Programme 1 is to provide support to the line function
components of the Department in achieving their goals. The focus for Programme 1 is the
provision of Finance, Corporate and Strategic Support Services to the Department.
MEASURABLE OBJECTIVES
• To provide efficient and effective advisory and support services to the MEC.
• To establish and implement policy development and strategic management system within
the Department.
• To establish a fully integrated corporate service function that delivers effective and efficient
services.
• To ensure that the Department complies with its legal mandate and is effetively protected
from legal risk exposure.
19 Annual Report_2015/16
• To provide quality human resources management and development services to the
Department.
• To ensure effective financial resources management that complies with the PFMA.
• Development and maintenance of effective, efficient and transparent financial management
systems.
• To ensure effective management of Departmental assets.
• To provide effective management and advisory services.
• To provide an effective monitoring and evaluation system for the Department.
• To ensure that the Department is effectively integrated and positioned through corporate
communications.
OVERVIEW OF PROGRAMME PERFORMANCE
OFFICE OF THE MEC
The Office of the MEC provides ministerial support functions to the MEC for Agriculture and
Rural Development. The Department continued to forge links with the community of KwaZulu
Natal, including organized agriculture, Amakhosi, farming communities and various other
institutions. This was very critical as the Department prepared to launch its transformation
strategy, which set to redefine agricultural activity in the province.
OFFICE OF THE HEAD OF DEPARTMENT
The purpose of the Office of the Head of Department is to provide strategic and supportive
leadership, ensure compliance to legislative imperatives and good governance, guide the policy
direction of the Department and oversee the use of state resources. The Head of Department
was appointed in June 2015.
20 Annual Report_2015/16
CORPORATE SERVICES
Organizational Structure
As indicated under organization environment above, the department has undergone a major
restructuring process to ensure improved service delivery to the external clients. Since the
approval of the structure, 95% of newly created or redefined posts were job profiled and job
evaluated to determine the correct salary level. To ensure smooth transition from the old to the
new structure process mapping is provided a high priority, while the Human Resource, SCM and
Financial delegations have been reviewed.
Legal Services
Notable achievements of the directorate in this reporting period has been the scoring of 4 that
the section has achieved in terms of the Management Performance Assessment Tool (MPAT)
with regard to the implementation and adherence to the provisions of the Promotion of Access
to Information Act and the Promotion of Administrative Justice Act within the Department.
Notwithstanding the fact that the implementation of the requirements of PAJA was newly
introduced in all Departments at short notice, the directorate was able to successfully initiate
various interventions to ensure adherence to all the requirements as prescribed in terms of
MPAT.
Information Communications Technology
The Department undertook to implement the new ICT structure thereby appointing the Senior
Manager: ICT, the purpose being to provide strategic leadership with regards to ICT Governance,
Systems and Operational support. The governance sub-component was activated to improve the
implementation of the Corporate Governance of ICT framework and effectively manage ICT
Governance. This has enabled the unit to improve MPAT scores and AG audits. In terms of the
implementation of the ICT Charter, the relevant committees were constituted to effectively
manage ICT in the Department.
Integrated Human Resource Management
The new organizational structure was successfully implemented. Placement Models which
guided the placement for employees at all salary levels were developed and approved during
November 2015 and the matching and placing process subsequently commenced.
21 Annual Report_2015/16
All staff was successfully migrated from the old structure to the new structure as at 31 March
2016 and to date 2103 staff members have been appropriately placed.
Monitoring and Evaluation
Compliance was maintained for all planning and reporting activities as required in terms of
Treasury Regulations and the PFMA. Quarterly reviews were held with the Portfolio
Committees, sector Departments and Treasury (including the Audit and risk Committee).
The Department maintained its systems to ensure accurate planning, implementation and
reporting is achieved by the Department in 2015/16.
A policy register was introduced which tracked the status of all Departmental policies. Updates
are made when policies are formulated and/ scheduled for review.
FINANCIAL MANAGEMENT
The Finance Branch has a mission to support the Department to improve and ensure compliance
with PFMA, Treasury Regulations, SCM policies and any other relevant prescripts which will
results in clean administration and give public confidence that the public funds are utilized in an
appropriate and transparent manner that will improve service delivery.
The revised organisational structure provides for the Finance Chief Directorate and comprises of
the Office of the Chief Financial Officer, four Directorates and one Sub-directorate as follows:
a) The Office of the Chief Financial Officer: responsible for providing financial, technical,
strategic and leadership support to the entire Department.
b) Directorate Management Accounting Services: Manage budget and revenue planning,
control and reporting.
c) Directorate Financial Accounting and Administration Services: Provides expenditure and
creditor management, bookkeeping, loss control, banking, financial systems development
services as well as salary administration, financial administration and reporting services.
d) Directorate Asset Management: responsible for fleet management, infrastructure
management and moveable asset management services.
e) Directorate Acquisition, Demand, Supply and Logistic Management: Provides contract
development, bids administration, demand, supply and logistic services to the department.
'll. Annual Report_2015/16
f) Sub-directorate Internal Control: This sub-directorate is responsible to ensure adequate
internal controls are in place and implementation of corrective measures in terms of financial
risks and audit findings.
Highlights for 2015/16 Financial Year:
Compliance was maintained for all planning and reporting activities as required in terms of
Treasury Regulations and the PFMA. Quarterly reviews were held with the Portfolio Committees,
sector Departments and Treasury (including the Audit and Risk Committee). The finance branch
implemented an audit action plan to address the findings of the Auditor-General and Internal
Audit findings in its commitment towards a clean audit. The Assets and Fleet Management unit
ensured that the Department's fleet is well maintained and that the asset register accurately
reflects the Department's movable assets. Despite numerous challenges, the Supply Chain
Management unit was committed in providing the support and services to create an enabling
environment for service delivery particularly during the procurement for the drought relief
interventions provided by the department.
Expenditure by sub-programme: Administration
OfficeofMEC 20,756 17,968 2,788 14,144 14,129
Senior Mana ement 28,386 27,492 894 31,238 31,238
15
Co rate Services 168,429 167,271 1,158 225,495 201,514 23,981
Fi nancial Mana ement 84,515 64,957 19,558 75,454 69,089 6,365
Com munication s 32,125 24,153 7.972 25,793 25,791 2
TOTAL 334,211 301,841 32,370 372,124 341,761 30,363
The under expenditure of R30.363 million is due to the following:
23 Annual Report_2015/16
• R1 ,646 million as a result of the moratorium on filling posts until the matching and placing of existing
staff into the new organisational structure is finalised.
• R12, 168 million in respect of the migration from Novell to Microsoft not being finalised as anticipated.
• R955, OOO relates to the fact that the payment to Public Service SETA did not materialise as this
payment is now managed at a national level.
• R15,594 million relates to Machinery and equipment, mainly as a result of vehicles ordered but not
delivered of RS.023 million, as well as the delay in the migration from Novell to Microsoft resulting in the
server not being acquired as planned, amounting to R10,571 million.
24 Annual Report_2015/16
PROGRAMME 2: AGRICULTURAL DEVELOPMENT SERVICES
PURPOSE AND OVERVIEW
The main purpose of the Agricultural Development Services branch is to engage,
empower and transform farmers at all levels to participate in sustainable agricultural
and environmental practices in order to realize economic development and food
security in the Province.
The branch also played a pivotal role on the implementation, monitoring and evaluation
of departmental programmes/ projects in line with departmental policies and strategic
objectives.
The year 2015/16 exposed the province to severe drought, with most areas having less
than 7000mm of rainfall per year.
This report articulates progress and achievements of the programme. Challenges and
lessons learned are also highlighted. Most importantly, this report presents a way
forward of this programme in line with the new agricultural development approach
recently adopted by the Department.
Communal Estates Programme
During 2015/16 financial year the Department of Agriculture and Rural Development
has established 122 Communal Estates across the Province of KwaZulu-Natal. 198
Tractors have already been transferred to these communal estates. Maize and bean
production in the province was severely affected by drought in 2015/16. Fewer hectares
were planted than anticipated. The Department planted 4 258 ha of beans and 5 608 ha
of maize during 2015/16 .
River Valley Programme
During the 2015/16 financial year, the department did not meet its targets on the
implementation of irrigations schemes due to the drought situation in the province. The
department managed to plant 159 ha of vegetables.
25 Annual Report_2015/16
Infrastructure Projects
The Department implemented various infrastructure projects comprising dams, diptanks
and boreholes across the Province. The detailed Close-Out Report is available from the
Office of SGM: ADS. During 2015/16, the department has implemented 75 dams at a
cost of R26 million. Out of 75 dams, 12 dams are already completed. The Department
also established diptanks and boreholes across the Province. A total of 6 piggery and 8
poultry projects were completed.
Foot and Mouth Disease
Consulting Engineers were appointed through IDT and 4 contractors are on site.
The R76, 019 million FMD Redline fencing project is nearing completion with 96 kms of fence
line erected, together with associated vehicle and pedestrian gates. An adjacent gravel patrol
road is nearing completion with 98 kms completed and 30 guard houses are completed.
Rabies
Unlike in other provinces, in KZN the animal species which is a rabies vector has always
been domesticated dog. However, since January 2015 well into March 2016, 36 positive
rabies cases were reported and half of that have been outbreaks amongst jackal
population in the midlands. This is being monitored and measures to confine it in the
affected areas have been put in place with the hope that the disease fizzles out without
it spilling over to other animals. The insurgence of rabies amongst wild animals is of
concern in that unlike domesticated ones, they are difficu It to vaccinate.
Veterinary Diagnostic Services
During the report period the two laboratories i.e. Allerton and Vryheid generated
revenue in excess of Rl,5 million despite the glitches of procurement of reagents earlier
26 Annual Report_2015/16
in the year. The problem earlier in the year was that the reagents used at the laboratory
are supplied by sole suppliers.
Makhathini Development Projects
The Department implemented the following projects as a part of Makhathini
Development:
• Irrigation Canal - R2 million
• Surface Drainage Scheme - R24 million
• Rehabilitation of Balamhlanga Pan - Rll.5 million
• Expansion of Makhathini Irrigation Scheme - R2 million
• Development of Nondabuya/Kwela Irrigation - R2 million
• Development of Skhakha irrigation - R5 milllion
• Development of Mbangweni - Rl million
Research & Technology Development
The Department targeted 72 research and technology development projects to improve
agricultural production in the Province but has performed above the target by achieving
92 projects which were implemented during 2015/16.
Agriculture Skill Development Training
The Department has established a Departmental coordination forum in order to have a
comprehensive Departmental Training Plan for a more coordinated training approach.
The update report is based on the training that was only conducted through ASD and
excludes the sessions that are conducted by other sections through outsourced service
providers:
(ii) 352 farmers trained by OSCA
(iii) 327 farmers trained by Cedara
27 Annual Report_2015/16
Revitalisation of Agricultural Schools Programme
The MOU between Department of Agriculture and Rural Development and Department
of Education was entered into. The funding agreement with Zakhe Agricultural College
is in place. The first tranche payments effected for 5 schools (Weston, James Nxumalo,
Shakaskraal, Vryheid Landbou and Zakhe Agric College).
Drought Intervention Programme
The Province of KwaZulu-Natal has been affected by a severe drought in the 2015/16
financial year where the department of Agriculture and Rural Development had to
intervene with measures including animal feed, deworming and hay(7 454 tons of
Lucerne and Teff).
Expenditure by sub-programme: Agriculture
Sustainable Resource Management 79,655 77,460 2,195 75,492 75,492
Farmer Support and Development 1,253,807 1,167,294 86,513 1,381,999 1,326,626 55,373
Veterina Services 183,047 182,517 530 169,450 163,086 6,364
Research& Technology Development 171,693 169,990 1,703 182,490 181,914 576
Agricultural Economic Services 6,561 6,262 299 6,070 5,699 371
Structured Agricultural Education and Trainin 102,072 97,680 4,392 102,859 102,718 141
TOTAL 1,796,835 1,701,203 95,632 1,918,360 1,855,535 62,825
28 Annual Report_2015/16
The under expenditure of R62.825 million can largely be attributed to the following:
• R1, 877 million as a result of the moratorium on filling posts until the matching and placing of
existing staff into the new organisational structure is finalised.
• R10, 276 million in respect of animal feed and medicines ordered but not delivered and paid for by
31 March 2016. This includes additional fodder for drought relief to small scale and subsistence
farmers.
• R19.873 million in respect of lower than planned transfers to Communal Estates that were
established by the consolidation of adjacent parcels of land into viable farming units and the
establishment of commercial farming operations by the land owners in partnership with government
due to limited farming activities, as a result of the drought as well as slower that anticipated
progress on a hatchery project supported by the department.
• R30.799 million under Payment for capital assets as a result of slower than anticipated
implementation of drought relief interventions such as boreholes, stock watering dams and dip
tanks due to high demand and short supply for service providers due to drought amounting to
R27.733 million as well as vehicles ordered but not delivered amounting to R3.066 million.
29 Annual Report_2015/16
PROGRAMME 3: RURAL DEVELOPMENT
The programme seeks to ensure the coordination of vibrant, equitable and sustainable
government services to rural communities in KwaZulu-Natal. It is made up of two sub
programmes namely Rural Coordination and Social Facilitation
PROGRAMME PRIORITIES
The Rural Development programme has six main priorities which respond directly to the
intended outcome of the mandate, which seeks to achieve "vibrant, equitable, sustainable rural
communities contributing towards food security for all". These priorities will be the focus of the
coming MTSF period:
1. Improved land administration and spatial planning for integrated development in rural
areas.
2. Sustainable land reform (agrarian transformation).
3. Improved food security.
4. Smallholder farmer development and support (technical, financial, infrastructure) for
agrarian transformation
5. Increased access to quality basic infrastructure and services, particularly in education,
healthcare and public transport in rural areas.
6. Growth of sustainable rural enterprises and industries characterised by strong rural-urban
linkages, increased investment in agro-processing, trade development and access to markets
and financial services - resulting in rural job creation.
The Department seeks to make significant strides towards achieving the long-term objective of
government, where rural areas will be spatially, socially and economically integrated across the
three spheres of government. The objective further aims for a state where rural communities
will be economically active, have access to basic services, health care, quality education, food
security and jobs as a result of agrarian transformation and infrastructure development
programs.
The branch was consistent in providing all monthly, quarterly and annual reports as required by
the various planning processes. This has been supported and complemented by the established
KZN Interdepartmental Task team. In this regard the department hosted two (2) task teams
during the year and held meetings with relevant departments and the PGDP Action Working
Groups to share the Outcome 7 strategies. This has resulted in a comprehensively consulted and
aligned KZN Outcome 7 plan for 2016/17 financial year.
30 Annual Report_2015/16
The branch was tasked the provincial responsibility for co-ordinating the provinces Agrivillage
initiative in Emadlangeni. It successfully took on this task and managed the involvement of all
local and government stakeholders. This has resulted in a co-ordinated and integrated human
and agricultural settlement planning approach which will see fruition in 2016/17.
The branch together with the national DRDLR launched the national agriparks strategy in KZN at
provincial and district level. All districts are participating effectively in the roll -out with
established task teams and integrated strategy plans. The interdepartmental structure at
provincial level has met, planned and reviewed progress monthly. Wide scale consultations with
smallholder farmers in the districts has occurred.
The Department supported the Provincial champion of the Comprehensive Rural Development
Programme will all the relevant reporting, monitoring and evaluation reports.
In transition from the old to the new structure, the branch remained responsible for supporting
youth and women development programmes and events. The branch supported the successful
hosting of the National Female Entrepreneur Awards, Youth Summit for unemployed
agricultural graduates and provided a Skills Programme for Entrepreneurial Development of
women.
Expenditure by sub-programme : Rural Development
Rural Development Coordination Social Facilttation TOTAL
1,173 1,089 822 802
1,995 1,891
The under-expenditure of R104 OOO is in respect of Compensation of employees and related costs in
respect of vacant posts.
31 Annual Report_2015/16
84
20 104
Annual
Output I Strategic Objective Actual
I Output2014/15
Legal Services I I
ITC I Provide effective I and corporate and strategic support
IIntegrated Human I services to MEC,Resource Management HOD and the
Department
�I
Monitoring and 1 Evaluation
Management Advisory N/A
Services
Acquisition, Demand and Logistics 1
Asset Management
Provide effective, 1 efficient and
Financial Accounting I transparent financial 85%and risk Management Accounting I management
systems. 12
Internal Control and Risk I 11
ANNUAL Performance Measures TARGET
2015/16
CORPORATE SERVICES
Number of Legal 85 I Contracts and opinions
finalized
0 I Approved knowledge Management Strategy
21 No. of HR policiesdeveloped
4 No. of performance reports compiled
Approved HR Plan
FINANCIAL MANAGEMENT
Approved procurement -
plan.
Approved Infrastructure Project Management Plan (IPMP). Number of invoices paid within 30 days.
Number of In year Monitoring reports submitted
I Approved Risk Register
ACTUAL OUTPUT
2015/16
Variance between planned targets and actual I Comments on deviationsperformance achieved
Clients demanded more legal contracts and opinions than planned
Identified gaps necessitated development of policies
More invoices were processed and paid.
�I I
PROGRAMME 2: Agriculture Development Services
Output
Engineering Services
Infrastructure
Annual
I Strategic Objective Actual
I Output 2014/15
I To provide agricultural support services to farmers in order to ensure I sustainable development and management of agricultural resources
I
Performance Measures
SUSTAINABLE RESOURCE
Number of agricultural 12 I engineering advisory
reports prepared
Number of designs with
75 specification foragricultural engineering solutions provided
100 I Number of agricultural infrastructure established
40 No. of diptanksrehabilitated.
so Number of boreholes established
50 I No. of Irrigation schemesrehabilitated
ANNUAL TARGET 2015/16
ACTUAL OUTPUT
2015/16
Variance between planned targets and actual I Comments on deviationsperformance achieved
Demand driven
Demand driven
Delayed award of infrastructure projects contracts. Delayed award of infrastructure projects contracts. Delayed award of infrastructure projects contracts.
Project design stage was extended due to technical requirements.
new Land Use I I
indicator
il I I new indicator
new indicator
n/a I I
Disaster Risk
Management I I New indicator
30 I No. of Irrigation schemesdeveloped
85 I No. km of fencingerected
Number of hectares of agricultural land
200 I protected throughguiding subdivision / rezoning / change of agricultural land use
Number of Natural I resource assessmentcompleted
I No of hectares surveyed for soil classification
No of hectares surveyed
I for vegetation management.
1
Number of disaster relief schemes managed
I Number of disaster riskreduction programmes managed
Most of the projects were still at design stage.
Delayed award of fencing contracts.
Few applications required subdivision and change of land use.
There was a need for additional assessments to be conducted following drought incidents in the province.
Underachieved due to directive to undertake drought assessments for 8 weeks. Hectares assessed for grazing capacity Nambiti and hectares assesssed for biomass only - drought mitigation
-Demand-driven
SWAS and ARDM had additional Workshops on climate and weather.
Land Care I
Outputs I Strategic Objective
�I I I
To provide support to farmers through agricultural development programmes
Specialist Agricultural
Advisory Services
Annual
Actual
I Output
2293 No of green jobs createdthrough Land Care.
Number of hectares
6500 I protected/ rehabilitatedto improve agricultural production
Performance Measures
2014/15
I
FARMER SUPPORT AND
I Number of smallholder
100 producers receiving support
22 Number of commercialfarmers supported
Number of scientific 90 evaluation reports on
commodity based project
Number of on farm22 research report
Number of scientific
60 I value adding reports ondiversified agricultural products
ACTUAL
ANNUAL OUTPUT
TARGET
201S/16 I 2015/16
Variance between
planned targets
There was an increase in the number of project beneficiaries, which resulted in more jobs being created.
A total of 26 additional projects were approved. This increased the number of hectares rehabilitated.
and actual I Comments on deviations
performance
achieved
due to prevailing draught conditions
due to prevailing draught conditions
Fewer projects evaluated due to prevailing drought conditions
Limited personnel capacity led to under-achievement of target
Limited personnel capacity led to under-achievement of target.
Mentorship
N/A
N/A
I I
�IExtension Services and
I advisory I I
N/A
N/A
Crop Production I I
110
30
Number of agricultural
business plans supported
No of projects mentored
(constant)
Number of smallholder
producers supported
with agricultural advice
Number of hectares
I under irrigation used by
smallholder farmers I
I
I Number of jobs created
Number of communal I estates established.
Number of hectares of
14375 I maize established under
the Mechanisation
Programme
Indicator
demand.
is based on
Fewer projects were
implemented in 2015/16.
Target exceeded due to
drought relief programme.
Target could not be met
due to severe drought.
Drought prevalence
delayed the communal
estate programme.
Funds available could
accommodate the
establishment of 122
communal estates. The
remainder would be held
in reserve for 2016/17.
Target could not be met
due to severe drought
5:::3
Food Security
5850
New
indicator
New
indicator
New
indicator
300000
New
indicator
100
Number of hectares of
beans established under
the mechanisation
Programme
Number of hectares of
vegetable established
Number of hectares of
chicory established under
mechanization
programme
Number of hectares of
ground nuts established
under mechanization
programme
Number of households
benefiting from
agricultural food security
initiatives
Number of hectares
cultivated for food
production in communal
areas and land reform
projects
No. of community
gardens established
Because of the drought,
commodity was changed
from maize to dry beans in
some districts
Target could not be met
due to severe drought.
Target could not be met
due to severe drought .
Underachievement was
due to severe drought
. Seed has been kept for the
coming season.
Target could not be met
due to severe drought.
Target could not be met
due to severe drought.
Target could not be met
due to severe drought.
80 000
350
212
Annual
I Outputs I Strategic Objective I Actual�I Output
2014/15
To provide New Animal Health I veterinary services indicator
to clients in order to ensure healthy animals, safe animal
Export Control products and
I wellfare of people of n/a
South Africa
No. of household gardens established
No. of tunnels established
I No. of institutional gardens supported
Performance Measures
ANNUAL
TARGET
2015/16
Veterinary Services
Number of epidemiological units visited for veterinary interventions
Number of clients serviced for animal and animal products export control
ACTUAL
OUTPUT
I 2015/16
Variance between
planned targets
Target could not be met due to severe drought.
Projects were reprioritized and funds initially allocated for tunnels were used towards the establishment of communal estates.
Target could not be met due to severe drought.
and actual I Comments on deviations
performance
achieved
Large contribution from Rabies vaccinations
More clients required services.
Policies, norms and
% level of abattoir standards are still being
n/a I compliance to meat negotiated with the industry; but facilities do
safety legislation meet the minimum standards.
Veterinary Public health I I I Number of inspections to There were fewer
450 facilities processing registered abattoirs. This animal products and by resulted in a reduction in products. the number of inspections.
Number of inspections to Fewer facilities complied
500 I further processing with legislated
facilities requirements to allow
� I INumber of veterinary
n/a laboratory quality control Shortage of relevant
Veterinary Laboratory audits which meets the reagents.
services ISO 17025 standard.
170000 No of tests performed Demand driven
�
Outputs
Research services and
technical development
Infrastructure and
Support Services
Technology Transfer
Services
Strategic Objective
To provide experts
and needs based
research,
development and
technology transfer
services impacting
on development
objectives
To provide and
maintain
infrastructure
facilities for the line
function to perform
their research and
other functions
To disseminate
information on
research and
technology
Annual
Actual
Output
2014/15
69
34 200
New
indicator
22
Performance Measures
ANNUAL
TARGET
2015/16
ACTUAL
OUTPUT
2015/16
Technology Research and Development Services
Number of research and
technology development
projects implemented to
improve agricultural
production
Number of samples
analysed.
Number of research
infrastructure managed
Number of scientific
papers published
nationally or
internationally
Variance between
planned targets
and actual I Comments on deviations
performance
achieved
More projects were
completed and
implemented than
anticipated.
Indicator is mainly demand
driven. Target for the year
was under-set and
reconsidered later.
Target for the year was
reconsidered.
�
Outputs
Agri-business Support
and Development.
development to
clients, peers and
scientific community
Strategic Objective
To provide timely
and relevant
agricultural
economic services to
the sector in support
of sustainable
agricultural and agri
business
development to
increase economic
growth.
Annual
Actual
Output
2014/15
8
20
2000
new
indicator
Number of research
presentations made
nationally or
internationally
Performance Measures
ANNUAL
TARGET
2015/16
Agricultural Economics
Number of Agri
Businesses supported
with agricultural
economics advice
towards accessing
markets
Number of clients who
have benefttted from
agricultural economic
advice provided.
Number of functional
agro-processing facilities.
ACTUAL
OUTPUT
2015/16
Variance between
planned targets
The output is based on
demand. More
presentations were
requested during the
reporting period.
and actual I Comments on deviations
performance
achieved
There were fewer requests
for advice received.
The shortfall is due to
delayed rainfall.
this is still work in progress
;!;;
Macro-economic
Support
Outputs
HET
Further Education and
Training
Strategic Objective
To provide tertiary
agricultural
education and
training from NQF
levels 5 to anybody
who meets the
minimum
requirements to
study in agricultural
and related fields.
To provide formal
and non-formal
training on NQF
levels 1 to 4 through
FET Structured
n/a
Annual
Actual
Output
2014/15
New
indicator
New
indicator
102 Number of enterprise
budgets published
Number of agricultural
200 I economic information
responses provided.
Number of economic
reports compiled.
ANNUAL
Performance Measures I TARGET
2015/16
Structured Agricultural training
Number of agricultural
Higher Education and
Training graduates
Number of participants
trained in agricultural
skills development
programmes.
ACTUAL
OUTPUT
2015/16
Variance between
planned targets
Demand driven
Demand driven
and actual I Comments on deviations
performance
achieved
One student did not meet
the requirements
Demand driven
Outputs
e;
Education
programmes to all
interested
agricultural role
players.
Strategic Objective
Monitoring of rural
development
interventions.
New
indicator
New
indicator
Annual
Actual
I Output
2014/15
New
indicator
I
I New
indicator
New
indicator
Number of interventions
in revitalization of
agricultural schools
programme.
Number of interventions
in schools programs.
Performance Measures
ANNUAL
TARGET
2015/16
Rural Development
Provincially agreed Rural
IDevelopment plan with
annual targets for each of
the 6 priorities
I
I Integrated stakeholder
management strategy
finalised.
Quarterly KZN
Interdepartmental Task
Team (KITI) meetings
overseeing CROP.
ACTUAL
OUTPUT
2015/16
Variance between
planned targets
and actual
performance
achieved
Most of work in schools
was done through food
security program and land
care
Comments on deviations
Process commenced in
2014 but still draft.
Two were postponed due
to non-availability of key
members and OARD co
ordinator.
�
RURAL COORDINATION Improved Land
Administration And
Spatial Planning For
Integrated
Development Of
Rural Areas
New
indicator
New
indicator
New
indicator
New
indicator
New
indicator
Effective functioning
I nterdepa rtmenta I
Technical Team
supporting KITI (monthly
meetings).
% of external and internal
stakeholder contributing
to Rural development
plan implemented.
Number of
Development
produced
Rural
reports
Provincial SDF reviewed
District
produce
Municipalities
Rural
Development plans
aligned to SDFs and
PGDP's
Meeting with national
DRDLR held but
establishment of technical
team delayed due to non
availability of DARD co
ordinator.
Contributions from AWG
8, 1, 18, 6, and from DoH,
and EDTEA ICT, and DHS,
and DRDLR, and COGTA.
Reporting system still being
developed.
Indicator is on track
This is driven by Planning
Commission and is
currently underway. To be
completed by August 2016
Lekgotla.
�
Rural Development
Sustainable Land
Reform
Rural infrastructure
development
New
indicator
New
indicator
New
indicator
New
indicator
New
indicator
Number of Municipalities
implementing Spatial
Planning and Land
Management
(SPLUMA).
District Land
Agricultural
established
functioning
% of agricultural land
identified for
redistribution per district.
Number of hectares of
land purchased for
agricultural for
agricultural development
Agreed provincial and
district rural
infrastructure APP
More were done due to
cooperation of district
officials
This was to be done
through the DLRC which
were only formally
established in Dec 2015.
Not available from DRDLR
Sip 11 has been compiled
for KZN. Further
engagement is required
with OTP with regards
provincial co-ordination
around rural infrastructure
plans is required.
� Rural enterprise
development for job
creation
New
indicator
New
indicator
New
indicator
New
indicator
New
indicator
Consistent and accurate
reporting on rural
development
infrastructure
implementation
Rural Enterprises and
Industrial Development
Strategy developed and
agreed to
Support DMs to host
Rural Development
partnership investment
affairs
Number of Agri-
Parks/ Agri-Villages
established
Number of River Valley
projects sites identified
and planned
Only includes Sip 11 to
date.
Currently engaging
stakeholders. Slow
progress affected by
capacity of team.
Concept document
drafted and approved by
HOD.% to take place in last
quarter.
Agrivillage affected by
enviro issues and buy in
from farm dwellers,
Agriparks - all 10 districts
have basic plans ready for
construction
implementation to
commence.
Co-ordination with ADS
branch required to avoid
overlap/ duplication in
reporting and planning.
:!::;
New
indicator
New
indicator
Number of enterprises
and indu�ries supported
in rural development
initiatives (agriculture
and other sectors) by
government
stakeholders.
Number of jobs created
through rural enterprises
The branch is only able to
review its own support
given to various initiatives
at present: Marula,
Aquaculture lmbizo,
lntshelenhlahla Project
This target requires
improved system of
monitoring and reporting.
3. TRANSFER PAYMENTS
3.1 Transfer payments to public entities
The Department had one public entity and one government business entity reporting to the Department during 2015/16 financial year. The entities produce their own separate annual reports that provide details of their mandates, outputs and achievements. The purpose of the entities is as follows:
Agri-business Development Agency (ADA) is the public entity providing the vehicle to grow the agricultural sector and improving access for black commercial farmers and agribusiness entrepreneurs through partnership and knowledge. During the year, the mandate of the entity was defined to focus on secondary agricultural interventions whilst the department will focus on primary agriculture, thereby ensuring that there is no duplication of functions between the department and agency.
Mjindi Farming (Pty) Ltd (Mjindi), a government business entity assists in the management and implementation of the Makhathini Integrated Master Development Plan which includes: • Repair and upgrading of the existing 3 500ha currently under irrigation;• To sustain the Makhathini Irrigation Scheme as a viable and sustainable Farmer Settlement
Project;• To transform Mjindi Farming (Pty) Ltd into a land user/ landowner/ farmer driven entity;• To assist with the planned and approved expansion of the Irrigation Scheme to for the settlement
of additional farmers;• To assist and support the Shareholder with the planning and implementation of the Makhathini
Integrated Master Development Plan; and• Explore and facilitate new agri-business opportunities on the irrigation scheme.
The Department monitors the progress and performance of these entities through quarterly reviews of financial and non-financial performance by the steering committee established and chaired by the Head of Department. The Department also has representation at board meetings.
Transfers to Public and Government Business Entities
Agri-Business Development A enc ADA
Mjindi Farming (Pty) Ltd
Agricultural 50,506 development and management of irri ation scheme
41,373 9,133
TOT AL 150,006 119,496 30,510
The under expenditure by ADA and Mjindi is in respect of outstanding commitments where the goods/services had not been rendered and paid for by 31 March 2016 . The entities have requested that the funds be rolled over to the 2016/17 financial year to meet these commitments.
48 Annual Report_2015/16
Reasons for the funds unspent by the entity
3.2 Transfer payments to all organisations other than public entities
The Department made transfers to various organisations and private enterprises as listed in the table below. The Department enters into Service Level Agreements (SLA) with all entities that receive funds with the exception of farmers that received soil conservation subsidy. The subsidy is only given if the specific criteria have been met and it is therefore not necessary to enter into any form of agreement. The requirements of S38(1)U) of the Public Finance Management Act is included in these SLA's. The reporting requirements and monitoring mechanism as well as payment schedule is also included in the SLA. The table below reflects the transfer payments made for the period 1 April 2015 to 31 March 2016, excluding transfers for motor vehicle licence, radio licence and payments to SETA.
Mvushini Estate Private Soil 402 402 Pty Ltd conservation
subsid Aquason Private Soil 789 789 Construction conservation
subsid
RadleyJH Private Soil 309 309 conservation subsid
Nyonende Private Infrastructure 4 200 3,290 Slower than Hatchery and inputs anticipated
progress sin im lementation.
lnqanawe Tunnel Private Infrastructure 4,450 4,450 Project
SA Sugar Private Agricultural 2,544 2,544 Research Institute Research
SA Sugar Private Project 27,053 Nil Procurement of Association implementation goods and services
commenced but no payments made by 31 March 2016.
Communal Private Operational 9,640 889 Prevailing drought Estates costs for conditions.
tractors used for crop
roduction
lthala Public Wages 12,193 11,807 The actual shortfall Development Corporation on operational cost Finance of Ntingwe Tea
was slightly less than antici ated.
Zakhe Agricultural Private Infrastructure 3,089 Nil Late finalisation of College business plan and
transfers
Agricultural Public Infrastructure 10,681 Nil Late finalisation of Schools schools business plan and
transfers
Households Private Various 18,488 18,488 employee benefits
Donations Private Cash 5 5 donations
49 Annual Report_2015/16
The table below provides details of transfers that were budgeted for in the period 1 April 2015 to 31 March 2016 but no transfer payments were not made.
Skills Greenest 2,760 1,805 Payment to Public Development Municipality Service Sector is now Levy awards consolidated and paid
at national lev
Nyonende Infrastructure 8,300 4,200 Slower than Hatchery and inputs anticipated progress
in im lementation Communal Operational 25,392 9,640 The prevalent drought Estates Costs for condition resulted in
tractors for less hectares crop cultivated during production 2015/16 planting
season resulting in lower operational costs than bud eted.
50 Annual Report_2015/16
1. CONDITIONAL GRANTS
4.1 Conditional grants and earmarked funds received
Conditional grants and earmarked funds received The tables below details the four conditional grants received for the period 1 April 2014 to 31 March 2016.
411L dC . . an are p rogramme G t ran -
Department who transferred the grant
Purpose of the grant
Expected outputs of the grant
Actual outputs achieved
Amount per amended DORA (R'OOO)
Amount received (R'OOO)
Department of Agriculture, Forestry and Fisheries
To promote sustainable use and management of natural resources by engaging in the initiatives that supports the pillars of sustainability (social, economic and environmental) leading to greater productivity, food security, job creation and better well-beinq for all • Community benefiting from the programme
through job creation - 816 people• Projects beneficiaries benefiting from skills
transfer - 4 73 people• Making productive land available for
agricultural production (grazing) - 4127ha• Number of awareness events hosted -10• Number of youths successfully attending
organized Junior Land Care initiatives - 120• Km of fence constructed - 131 km's• Improved social economic status - 895• Beneficiaries with improved skills - 615• Increased grazing areas - 3054ha• Number of events were to increase
awareness amongst communities anstakeholders - 11
• Number of youths successfully attendingorganized Junior Land Care initiatives - 120
• Km of fence erected - 47.92km's10,666
10,666Reasons if amount as per DORA was not -
received
Amount spent by the department (R'OOO) 10,666 Reasons for the funds unspent by the department -
Rqeasons for deviation on performance Late delivery of fencing material has resulted in projects not being completed by 31 March 2014 which affected the number of kilometers fenced and hectares of grazing land established. However, this has been offset by the over achievement of improved economic status, improved skills and awareness events.
Measures taken to improve performance Earlier procurement.
Monitoring mechanism by the receiving Monthly and quarterly monitoring. department
4.1.2 Comprehensive Agriculture Support Programme
Department to whom the grant has been transferred: Kwa-Zulu Natal Department of Agriculture and Rural Development
Purpose of the grant. To provide universal and corn prehensive agricultural support (products and services) to individual farmers, land
reform beneficiaries and farminq communities.
51 Annual Report_2015/16
Expected outputs of the grant
Actual outputs achieved
• Hectares of Grain planted: 6250 (11 clusters)• Broiler units established: 1 project with 2 * 1500• Layer units established: 1 * 24 OOO unit• Number of irrigation systems developed: 3• Citrus projects developed: 1 (30ha)• Number of Sugarcane clusters: 9• Number of beef projects supported: 3• Number of Aquaculture projects supported: 1• Number of clusters erected fencing: 11• Revitalization of Agricultural Colleges infrastructure:
o OSCA:- FET Building- Library and Media Centre- Dormitories and Staff Houses- Fencing of the college Poultry and Piggery
enterprises.
o CEDARA:Student Residence Convert Outbuilding at Piggery into Office/Ablution. Refurbishment and renovation of student farm buildings.
• Training and Mentorshipo Number of farmers who attended credit bearing
courses: 700o Number of farmers who attended non-credit
bearing courses: 1300o Number of farmers mentored: 169
• Extension Recovery Plano Registration with professional bodies
(SACNASP/SASAE): 1200 extension personnel.o Qualification and upgradingo Provision of uniforms for front line extension
personnelo Communication and Brandingo Provision of Extension Tools
• Hectares of Grain planted: 6155 (11 clusters)• Broiler units established: 2 projects with 2 * 1500• Layer units established: 2 * 4 OOO and 2000 unit• Number of irrigation systems developed: 3• Citrus projects developed: 1 (30ha)• Number of Sugarcane clusters: 9 (Ratoon
management and re-planting etc) • Number of beef projects supported: 3• Number of Aquaculture projects supported: 1 (removal
of alien species and installation of 3 irrigation pumps)• Number of clusters erected fencing: 11 (35km)• Drought relief programme for 10 Districts in KZN.• Revitalization of Agricultural Colleges infrastructure:
o OSCA:- FET Building (Continuation)- Library, Lecture theatre and Media Centre
(Continuation)
52 Annual Report_2015/16
- Dormitories and Staff Houses (Continuation)- Fencing of the college Poultry and Piggery
enterprises (Order issued and fundscommitted)
o CEDARA:- Investigate new hostel for FET (First draft of
drawings)- Convert Outbuilding at Piggery into
Office/Ablution (tender stage)- Refurbishment and renovation of student farm
buildings (80% complete)
• Training and Mentorshipo Number of farmers who attended credit bearing
courses: 1253o Number of farmers who attended non-credit
bearing courses: 1575o Number of farmers mentored: 30
• Extension Recovery Plano Registration with professional bodies
(SACNASP/SASAE): 1200 extension personnel. o Qualification and upgrading 11 (8 ND: agricultural
management; 1 B-Tech agricultural management;1 ND Animal science and 1 BSC Agriculturalscience)
o Provision of uniforms for front line extensionpersonnel.
o Improve image and professionalism (PAHCtraining in Quarter 4, and 2 papers presented inQuarter 2)
o Provision of Extension Tools: 764 Digi-pensissued to extension personnel.
o Recruitment ( 116: 59 agricultural advisors; 49senior agricultural advisors; 4 agriculturaldevelopment officers and 4 senior agriculturaleconomists recruited)
Amount per amended DORA R 226 161 000.00
Amount transferred R 226 161 000.00
Reasons if amount as per DORA not N/A transferred
Amount spent by the department R 226 161 000.00
Reasons for the funds unspent N/A
Monitoring mechanism transferring department
by the The transferring Department is DAFF and Monitoring is done through: • Quarterly reports by the province (Financial and Non
financial performance)• Physical project site visits by province and DAFF team.• Annual report by the province (Financial and Non
Financial performance)
53 Annual Report_2015/16
4.1.3 llima/Letsema Project grant
Department to whom the grant has been transferred: Kwa-Zulu Natal Department of Agriculture and Rural Development
Purpose of the grant. To contribute towards the implementation of Departmental objectives which are to increase food production, reduce poverty, unemployment and equalities in rural farminq communities.
Expected outputs of the grant • Grain Production Land preparation i.e. Ploughingand Discing (1500ha)
• Supply of production inputs .• Cotton production supply and deliver production
inputs.• Irrigation Development.• Mechanisation programme (Land preparation
including Ploughing, Discing and Planting).• Food security supply mechanization services,
inputs and infrastructure (Fetsa Tlala programme).• Drought relief programme in all eleven districts .
Actual outputs achieved • Grain Production Land preparation i.e. Ploughingand Discing (1869ha)
• Supply of inputs: Insecticides, Fertilizer and Seedfor Vegetable production.
• Cotton production: land preparation, supply anddeliver production inputs for Makhathini cottonproject.
• Irrigation Development: irrigation repairs andcannels and installation of new irrigation pumps forNdumo A and Makhathini irrigation scheme.
• Mechanisation programme: Tractor repairs, Landpreparation including Ploughing, Discing andPlanting for Maize and Dry Beans.
• Food security: Supply mechanization services,inputs and infrastructure (Fetsa Tlala programme).
• Drought relief programme: Support for livestockfarmers through supplying of feed supplements,scoopinq of dams and boreholes.
Amount per amended DORA R69 401 000.00
Amount transferred R69 401 000.00
Reasons if amount as per DORA not N/A
transferred
Amount spent by the department R69 401 000.00
Reasons for the funds unspent N/A
Monitoring mechanism by the transferring The transferring Department is DAFF and Monitoring is department done through:
• Quarterly reports by the province (Financial andNon-financial performance)
• Physical project site visits by province and DAFF .• Annual report by the province (Financial and Non-
Financial performance)
54 Annual Report_2015/16
4.1.4 EPWP incentive grant for Provinces -
Department who transferred the grant Public Works Purpose of the grant Increase work opportunites for unemployed
persons Expected outputs of the grant 4 projects funded
135.65 FTE's 130 Job opportunities 12 .4 km Km of fencing constructed 531 Ha rehabilitated
Actual outputs achieved 4 projects funded 135.65 FTE's 130 Job opportunities 12 .4 km Km of fencing constructed 531 Ha rehabilitated
Amount per amended DORA (R'OOO) R2,296,000
Amount received (R'OOO} R2,296,000
Reasons if amount as per DORA was not n/a received Amount spent by the Department (R'OOO} R2,296,000
Reasons for the funds unspent by the n/a Department Reasons for deviation on performance n/a Measures taken to improve performance None Monitoring mechanism by the receiving Monthly and quarterly monitoring and annual Department evaluation
55 Annual Report_2015/16
2. DONOR FUNDS
5.1 Donor Funds Received
The Department received foreign aid for the Rabies Programmes during the 2015/16 financial year.
5.2 Rabies Programme
The Department signed an agreement with the Bill Gates Foundation for funding of the rabies programme to the value of $2,179,371 over five year period. This funding will be received through the World Health Organisation.
Name of donor Bill Gates Foundation through World Health Orqanisation
Full amount of the funding $2,179,371
Purpose of the funding Prevention of human rabies through the control of doq rabies
Expected outputs • Sustaining and supplementing theDepartment's control measure againstrabies through the acquisition ofadditional supplies such as vaccinations;
• Promoting public awareness which filtersinto all aspects of rabies control;
• Promoting primary health care ofcompanion animals through clinics in keyareas; and
Actual outputs achieved • Sustaining and supplementing theDepartment's control measure againstrabies through the acquisition ofadditional supplies such as vaccinations;
• Promoting public awareness which filtersinto all aspects of rabies control;
• Promoting primary health care ofcompanion animals
Amount received in current period (R'OOO) 2,895
Amount spent by the department (R'OOO) 2,895
Reasons for the funds unspent The funds received were fully utilised. Monitoring mechanism by the donor Regular financial and performance report from
the department
56 Annual Report_2015/16
PART C: GOVERNANCE
1. INTRODUCTION
The Department has an obligation to maintain the highest standards of governance in the
management of public finances and resources. The Department applies a number of
measures to ensure that the taxpayers and communities at large receive efficient services,
with reduced incidence of fraud and corruption, at best value for money.
2. RISK MANAGEMENT
The Department has a risk management policy and conducts regular risk assessments to
determine the effectiveness of its risk management strategy and to identify new and emerging
risks. There is a Risk Management Committee that advises management on the overall
system of risk management, especially the mitigation of unacceptable levels of risk. The Audit
Committee (Provincial Treasury) advises the Department on risk management and
independently monitors the effectiveness of the system of risk management. There has been
significant progress in the management of risks, particularly in the area of Information
Technology.
3. FRAUD AND CORRUPTION
The Department's has a fraud prevention plan which is closely monitored by the Internal
control and Risk Management unit. The Department has a Hotline managed through the
Office of the MEC, where activities of fraud and corruption may be reported.
4. MINIMISING CONFLICT OF INTEREST
All employees are made aware to declare any activities that may be in conflict with the work
for which they are officially remunerated. Senior Managers declare their financial interests on
an annual basis. Furthermore, members in all committees of the Department declare their
interest prior to participating in official meetings.
5. CODE OF CONDUCT
The code of conduct /ethics document is distributed to all staff on an annual basis. Posters
are also displayed on all entrance halls of Departmental offices. This ensures that all
employees are aware of the expected conduct while on duty, as well as the channels of
recourse that may be followed in the event of violation of these.
6. HEAL TH SAFETY AND ENVIRONMENTAL ISSUES
The Department prioritizes issues of Health Safety and Environmental and has a fully
functional committee which convenes on a quarterly basis.
58 Annual Report_2015/16
7. PORTFOLIO COMMITTEES
The Department has regular engagements with the Agriculture and Rural Development
Portfolio committee. Most matters raised by the Portfolio Committee have been addressed by
the Department during the year. The ongoing concerns such as the filling of critical posts and
finalizing the implementation of the forensic investigations will be continuing in 2015/16.
8. SCOPA RESOLUTIONS
The Public Accounts Standing Committee met with the department on 14 October 2015 todeliberate on the Auditor-General report for the 2014/15 financial year. The table below areresolutions that emanated from the hearing that pertain specifically to the department. Theresponses, as submitted to the committee, are also provided.
107/2015 Compliance with laws and regulations
Findings that funded vacant posts were not filled within 12 months and Loss Control Committee not fully functional.
During July 2015 the Department received Yes, ooncurrence from DPSA on the Filling of critical implementation of the new structure. During posts is the implementation of a new structure the ongoing and advertising and filling of posts should be limited monttored by to critical posts only to prevent staff from being the Agriculture rendered redundant. Engagements with and Rural Organised Labour on the appropriate Development implementation ensued and were resolved Portfolio during December 2015. Committee This new structure which was aligned to the new strategic direction of the department resulted in the creation of new senior positions. The placement of top management was then rearranged based on their skills and qualifications which thereafter resulted in oore critical posts being vacant. In light of the Provincial Directive on the Cost Cutting Measures, the department identified critical posts and approval was sought from the MEG: Finance. Approval was then received in January 2016 which resulted in 34 critical posts being advertised, inclusive of 5 key management posts viz: SGM: Agricultural Development Services SGM: Rural Development GM : Veterinary Services GM: Agricultural Research, Development and Training Institutes SM: Office of the HOD The recruitment processes were underway with an envisaged finalisation date of 31 March 2016 but has since been wa aid b the
59 Annual Report_2015/16
108/2015
109/2015
Irregular expenditure
Mjindi Farming, Investigation on misappropriation of entity's assets
Effective steps were not taken to prevent irregular expenditure
(a) That the Department of Agriculture and Rural Development
announcement of the freezing of all vacant posts on Persal. The new structure will only be effective as at 1 April 2016 and only then will posts be available for filling after obtaining relevant approval.
The Loss Control Committee has been appointed and is fully functional with effect from September 2015. The Tenns of Reference for the committee were reviewed and approved by the Head of Department in August 2015. The department has created a policy register Yes that lists all the relevant laws and regulations affecting the department as well as all the approved policies with date of approval and when it's due to be reviewed. The Standard Operating Procedures developed are based on these Acts, Regulations and approved policies. With regard to the SCM environment, the SCM Policy and Delegations was reviewed and approved during the Provincial Treasury intervention at the department's SCM unit in 2014. The department developed an SCM Checklist which lists all the controls that must be followed during the procurement process and forms part of the source documentation to the payment voucher. The contract management section of the department has been expanded in the new organizational structure that will contribute to better management of contracts, including timeous renewal where necessary. This will eliminate the need for month-to-month contracts which eventually constitute irregular expenditure. Further to the above, the department's Internal Control and Risk Management Unit will be undertaking a comprehensive review of the risk and controls in SCM during the first quarter of the 2016/17 financial year. Finally, an analysis of the irregular expenditure over the past few years shows a decline in the amount of irregular expenditure incurred by the department from a high of R117.829 million in 2012/13 to R22.335 million in 2013/14 and R17.360 million in 2014/15. This is a positive trend in the right direction as the department is committed to eliminate the occurrence of irregular expenditure. Disciplinary action has resulted in one official being dismissed and one suspended without pay for a period of three months due to SCM irregularities. A further twenty seven officials have received written warnings for remunerative work outside public services.
The Board of Mjindi Farming (Ply) Ltd and CEO analyzed the report. Two officials are mentioned in the report with alleged to have committed supply chain management irregularities and misappropriation of the assets of the entity. The
60 Annual Report_2015/16
Yes
110/2015 Reports on review of public entities: Mjindi Farming and AgriBusiness Development Agency
requested an independent consulting firm to perform an investigation based on misappropriation of entity's assets and supply chain management irregularities.
(b) That the entity received the final reports and in the process of analyzing the recommendations and evidence provided.
The MEC for Agriculture and Rural Development is in the process of reviewing the following aspects of the public entities (Mjindi Farming and the Agri Business Development Agency) which were funded by the Department:
The continued operation of Mjindi Farming as a public entity in view of recent developments around land claims in the Makhathini Flats, the question of the sustainability of the development of the farming operations at Makhathini Flats which was presenHy being independenHy investigated.
The review of the mandate of the AgriBusiness Development Agency so as to avoid duplication or takeover of functions that should be carried out by the Department and whether the provincial government is receiving value for money from
forensic report recommended that the 2 employees be subjected to a disciplinary process.
Subsequentiy, the Mjindi sought expert opinion from Mjindi Lawyers who undertook representations from the 2 employees. The firm of lawyers carried out further investigation on both employees to obtain more information on the allegations raised in the forensic report.
Allegations against one official could not be substantiated and no further disciplinary action instituted.
The second official was found guilty of misconduct and suspended without pay for one and half months coupled with written warning.
The Department is in the process of mechanical review of Mjindi (PTY) Ltd through the services of the consultants. The mandate of Mjindi is to provide water, services and the maintenance of the canal and the irrigation network, roads and other infrastructure. In addition it provides extension support to farmers, mechanization services and administering the lease agreement for the farmers in the irrigation scheme.
Despite years of providing this service, the agricultural potential of the farmers remains poor due to poor and lower quantities of produce. This has not improved the viability of farmers operations and neither has it lifted their socio-economic status.
Mjindi as an organization itself has not been able to effectively collect the revenue efficiently. This said in the background of the annual capital injection by the state of R50 million as against R4 million revenue collected. The farmers perpetually rely on government support.
As of 2015/2016, the Department has undertaken a review of its strategy and policies which guide the implementation of the projects. A decision was reached for the department to concentrate efforts on primary agriculture with farmers. In the past, Agriculture Development Agency (ADA) also operated in the same space. ADA was tasked to concentrate more on secondary and tertiary agriculture.
The settlement of land claims does not have a direct impact on the revenue that can be generated by Mjindi Farming Ply Ltd. The entity collects revenue only from the irrigation scheme. The new mandate of Mjindi includes;
(i) Repair, upgrading and maintenance of the
61 Annual Report_2015/16
No, the mechanical review of Mjindi not finalised. Also, the Provincial Treasury is undertaking a review of all public entities in the Province
the continued existence of this entity ..
(ii)
infrastructure on the land under irrigation.
To sustain the Makhathini irrigation scheme as a viable and sustainable Farmer Settlement Project.
(iii) To collect water tariffs from farmers to sustainthe irrigation scheme and in tum to supply ter.
(iv) To assist with the planned and approvedexpansion of the irrigation scheme toapproximately 15 OOOha for the settlement ofadditional farmers.
(v) To assist and support the Department with theplanning and implementation of the MakhathiniIntegrated Master Development Plan.
(vi) Explore and facilitate new agri-businessopportunities on the irrigation scheme.
(vii) And at a particular point, transform/hand overits responsibilities to an establishedfarmer-land owner driven entity.
The erroneous transfer of the land and the buildings under the control of Mjindi has not been corrected. Some of the transferred assets are now being utilized by the Trust. Negotiations for Mjindi to lease some properties from the Trust have been concluded. The sustainability of the development of the farming operations at Makhathini flats is part of the mechanical review which is yet to be undertaken that aims at reviewing the viability of the farming operations and the upliftment of socio-economic conditions for the farmers in the area.
The outcome of the review exercise for ADA was the change in focus. ADA now concentrates on agroprocessing and industrial crops, whilst OARD continues with primary production. In this regard ADA exists as a catalytic commercial vehicle to facilitate the growth of a robust, transformed, diversified, competitive and sustainable agroprocessing/agribusiness in collaboration with DARO. A five year plan has been submitted to OARD for comments and to be tabled to Legislature.
ADA strives to promote, establish, facilitate and support the growth of black owned and managed agribusiness enterprises along agricultural value chains in KwaZulu-Natal through partnerships with individuals, communities, private sector and other public sector institutions in order to achieve a transformed Agribusiness Sector in KZN.
Its services include the following amongst others;
(i) Commercialization of production.
(ii) Provision of infrastructure for orocessina
62 Annual Report_2015/16
(machinery, automation, dairies, etc.)
(iii) Induce diversification the agricultural sectorthrough focusing on industrial crops e.g. Wine,coffee, castor etc.
(iv) Building new agricultural industries like cocoa.
(v) Forging partnerships with commodityassociations and agro-processingassociations.
(vi) Attraction and unlocking of investment, throughfor example private-public-partnerships andjoint ventures (increasing the role of the privatesector).
(vii) Capacity building to support and developentrepreneurship and business acumen.
(viii) Linking farmers and agribusinesses to market.
(ix) Supporting quality & standards (adherenceto).
(x) Leveraging of funds.
(xi) Warehousing shares for clients/beneficiaries.
This will ensure continuous existence of ADA and will slowly remove it from depending on the government fiscus. ADA recently applied and received R40 million Jobs Fund funding and has put together business plans for more funding from the Jobs Fund. Ada has also started charging project management fees when implementing projects for other organizations either than DARD. In line with the DARD approach the ADA is also seeking partnerships and alignment with the private sector and commodity organizations. It is key that these partners are harnessed to build capacity and build networks for primary producers and agro-processing companies
9. PRIOR MODIFICATIONS TO AUDIT REPORTS
The Department received an unqualified audit opinion for 2014/15 financial year.
10. INTERNAL CONTROL UNIT
g) The Internal Control unit monitored the implementation of action plans emanating from all audits,
such as Auditor General, Provincial Treasury Internal Audit and audits conducted internally. The
internal control environment is subsequently strengthened.
63 Annual Report_2015/16
REPORT OF THE AUDIT & RISK COMMITTEE ON
VOTE 3 -AGRICULTUREAND RURAL DEVELOPMENT
1. Objective and responsibility of the Audit and Risk Committee
The Provincial Audit and Risk Committee (PARC) is the shared audit and risk committee for the provincial
departments and is further sub-divided into three Cluster Audit and Risk Committees (CARC's) that
provide oversight of key functions to the KZN Provincial Government Departments. The Department of
Agriculture and Rural Development is served by the Economic Cluster Audit & Risk Committee.
The PARC is primarily responsible for reviewing the following:
(a) the effectiveness of the internal control systems;
(b) the effectiveness of the internal audit function including its annual work programme, co-ordination
with external auditors, the reports of significant investigations and responses of management to
specific recommendations;
( c) the risks associated with the Department's operations covered in the scope of internal and external
audits;
( d) the adequacy, reliability and accuracy of the financial and performance information provided to
management and other users of such information;
(e) any accounting and auditing concerns identified as a result of internal and external audits;
(f) the effectiveness of strategies, policies and procedures to prevent and detect fraud and corruption
and
(g) the institution's compliance with legal and regulatory provisions.
The Committee reports that it has discharged all of its responsibilities in compliance with the Public
Finance Management Act, No.I of 1999 (PFMA), Treasury Regulations 3.1, including all other related
prescripts, that it has adopted appropriate formal terms of reference contained in its Audit and Risk
Committee Charter. The Committee is pleased to present its report for the financial year ended 31 March
2016.
64 Annual Report_2015/16
2. Audit Committee Members and Attendance
The PARC was appointed on 23 February 2015. During the financial year under review, certain terms and
conditions of the members' conditions of appointment were amended and the contracts of five members
were renewed effective from the 30th of October 2015.
The table below also outlines the PARC and Economic CARC meetings held and attendance thereof by
members during the reporting period.
# Name of Member
1. Mr S Simelane(Acting Chairman ofPARC and Economic CARC)
2. MrVRamphal
3. Mr P Christianson
4. Mr D O'Connor
5. Ms TNjozela
3. The Effectiveness of Internal Control
PARC Meetings
Attended
3
3
3
3
2
Economic Special Meetings Meetings
Attended
4 2
4 2
2 2
NIA 2
NIA 2
The Committee has reviewed the reports of the Internal Auditors, the Audit Report on the Annual Financial
Statements and Management Report of the Auditor General of South Africa (AGSA) and has noted with
concern, the weaknesses in controls around the following areas:
Isikhowe Juncao Mushroom Project with specific concerns being the production database and
awareness campaigns
Expenditure Management, with specific concern being Irregular Expenditure
Asset Management - Moveable Assets
Subsistence & Travel Expenditure
Performance Information
Supply Chain Management
65 Annual Report_2015/16
4. Risk Management
The Committee has, as defined in its Charter, adequately provided oversight on management's processes of
identifying and monitoring business risks. For the period under review, the committee's responsibilities
have been focused, among other things, on the quarterly review of the department's risk register and
progress made by the department with regard to implementation of risk mitigation plans. The Department
has constantly been advised about best practices to consider to improve the management of key business
risks and opportunities.
As at the end of this financial year, the department's risk register status was as follows:
Risk Grouping Total
Critic Major Moderate Minor Insignif
al icant
Number of risks identified 0 6 22 4 0 32
Number action Plans Identified 0 12 56 4 0 72
Number of action plans 0 2 41 2 0 45
completed
The Committee is concerned about the slow progress made by the department in addressing risks classified
as Major. The Committee has also been concerned about the department's failure to review and update its
risk register on a regular basis. The department is, therefore, urged to treat the risk register as a dynamic
document which should be reviewed and updated continuously to include emerging risks, and risk that has
materialized. Furthermore, the department was urged to improve it risk management systems and
procedures to ensure the linkage to department's business strategy (encompassing its vision, mission and
objectives), its operational imperatives and philosophies, policies plans and initiatives with positive impact
on service delivery.
5. Forensics Investigations
During the period under review, the Committee noted that there were nine (9) forensic investigations, all
relating to alleged procurement irregularities and mismanagement of funds, which the department has
referred to the Provincial Internal Audit Services for investigation. Three (3) of these investigations were
66 Annual Report_2015/16
completed and six (6) are in-progress. The department and the Provincial Internal Audit Service are urged
to promptly finalize the outstanding investigations, and work together to implement recommendations on
the finalised investigation.
The Committee is unable to comment on the completeness of the investigations conducted during the year
under review as the department failed to respond to the request to furnish the Provincial Internal Audit
Services (PIAS) with a list of any other in-house or outsourced investigations to other service providers by
the Department. As a result, the committee is unable to further comment on the completeness of the
department's fraud risk profile.
6. Quality of in year management and monthly/quarterly reports
The Committee was satisfied with the content and quality of quarterly reports in respect of in year
management and quarterly performance reports submitted in terms of the PFMA and the Division of
Revenue Act prepared and issued by the Accounting Officer of the Department during the year under view.
7. Evaluation of Financial Statements
The Committee has:
Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report,
with the Auditor General and the Accounting Officer; concerns have been noted around restatement of
corresponding figures as disclosed in note 32 to the financial statement. It should be noted that the
Department is a defendant in various claims and no provision for any liability that may result has been
made in the financial statements;
Reviewed the Auditor General's Management Report;
Reviewed the Department's processes for compliance with legal and regulatory provisions,concerns
have been noted around procurement and contract management; failure to prevent irregular expenditure
amounting to R47,7 million as a result of non-compliance to supply chain management prescripts;
financial statements submitted for auditing were not prepared in accordance with prescribed financial
reporting framework and material misstatements of commitments; transfer payments and expenditure
were identified.
67 Annual Report_2015/16
8. Internal Audit
In line with the PFMA and the King III Report on Corporate Governance, the Internal Audit Function is
required to provide the Audit & Risk Committee, as well as Management, with reasonable assurance on the
adequacy and effectiveness of internal controls. This is primarily achieved through the implementation of a
risk based Internal Audit plan. The Committee has, through the CARC monitoring processes, considered
internal audit reports at its quarterly meetings detailing the assessment of the adequacy and effectiveness of
controls designed to mitigate the risks associated with operational and strategic activities of the
department. The Committee also considered the appropriateness of the corrective actions proposed by
management to improve the control environment.
The Committee has noted with concern, imposed financial and other limitations place upon Internal Audit
during the year under review. During the forthcoming financial year, the Committee will monitor the
progress made by the Internal Audit Function in resolving any potential budgetary or operational
difficulties in order to ensure that it fulfills its mandate and continues to add value to the department.
9. Auditor-General's Report
The Committee has monitored the implementation of corrective action plans to address the audit issues
raised by the Auditor General in the prior financial year. Furthermore, the Committee has met with the
Auditor General of South Africa to discuss and evaluate the major issues that emanated from the current
regulatory audit.
The Committee will ensure that corrective actions in respect of detailed findings emanating from the
current regulatory audit continued to be monitored on a quarterly basis through the CARC processes.
The Committee notes the Auditor General's unqualified opinion regarding the Annual Financial
Statements, and proposes that the Audited Annual Financial Statements be accepted and read together with
the report of the Auditor General.
68 Annual Report_2015/16
10. Appreciation
The Committee wishes to express its appreciation to the Management of the Department, the Auditor
General of South Africa, and the Provincial Internal Audit Services for the co-operation and support they
have provided to enable us to compile this report.
Mr S Simelane
Acting Chairman: Provincial Audit and Risk Committee
05 August 2016
69 Annual Report_2015/16
PART D: HUMAN RESOURCE MANAGEMENT
1. OVERVIEW OF HUMAN RESOURCES
The Department had challenges in filling critical, vacant posts during 2014/15. This was
related to the finalization of the organizational structure.
TABLE 1.1 - Main Service for Service Delivery Improvement and Standards
Main Services
To aid farmers to a level of self-
sustainability through integrated
agricultural support/development
services through:
• Training & Development
• Scientific Support Services
• Development support models
Actual Customers
Emerging & Commercial Farmers
Organised Agriculture
Members of the Public
Potential Customers
N/A
Standard of Service
Annual Research coordination committees forums
2500 farmers to be trained in agricultural techniques Establish 2 training agreements with tertiary institutions - UKZN & UNIZULU
50% of Agric Advisors to attend Customer care and diversity training
Actual Achievement against Standards
4 meetings took place in June & July, September, and December 2015.
Chief Directorate co-ordination forums now include the Scientific Managers from Crop, Livestock production, natural resources, analytical services and Farming Systems research ensuring a more holistic and integrated approach to planning and problem solving.
3258 farmers trained on agricultural techniques.
2 x training agreement has been signed with UNIZULU & UKZN
Partnership with UNIZULU approved on 18/12/2014. Development of funding agreement in process.
MOA with UKZN approved 29/05/2015. The WSP was approved and submitted to PSETA on the 30 April 2015. Customer care training included in the WSP.
Annual agricultural best practise Extension Advisory Summit conference was held in March 2016 at
Centenary Hall. Staff presented papers on extension work done
Finalise 1 x MOU between DARD MOA approved on 01/02/2016. and Dept. of Education on the recapitalisation of agricultural Steering Committee has been schools appointed and approved. Fund 4 x agricultural schools on Implementation Plan approved infrastructure - 01/02/2016
5 x user schools have received their first tranche of funding and will be submitting evidence of expenditure in July 2016.
TABLE 1.2 - Consultation Arrangements for Customers
Type of Arrangement Actual Customer Actual Achievements
Monthly Project planning (PPC) meetings with Communities communities Project planninq meetinqs were held at District level (132) Quarterly Consultation with IDP, DLC District offices 11 x District land reform committees established and launched by the MEC
11 X District rural development plans in draft.
10 x District Municipalities and Ethekwini have IDP's including sector and rural development plans incorporated and aooroved.
Quarterly Consultation meeting with DRDLR OARD Departmental structure including rural development has been approved by MEC.
Liaison is still in operation in the drafting of operating framework between OARD and DRDLR.
Monthly agri park co-ordination meetings held.
Establish 11 District Project steering committees District Offices Terms of Reference for District Project steering committees are part of by 30 Sept 2015 approved Agrarian Transformation Strategy. All eleven districts are already
presenting their projects before the District Project Steering Committee and recommendations generated there are presented to the Provincial Project Steering Committee.
Annual Research coordination OARD 4 meetings took place in June & July, September, and December 2015. committees forums
Chief Directorate co-ordination forums now include the Scientific Managers from Crop, Livestock production, natural resources, analytical services and Farming Systems research ensuring a more holistic and integrated approach to planning and problem solving.
4 x Quarterly Animal Health Forum meetings hosted (including external Monthly Livestock / (Annual) wildlife Association Livestock farmers stakeholders). Meetinqs
1 x Annual Client Satisfaction Survey conducted. Annual Client satisfactory survey OARD
Twice a year- Provincial Agriculture Education Agricultural schools The focus was changed towards the MEC Special Projects for the
and Training forum revitalisation of agricultural schools.
Implementation Plan approved - 01/02/2016
5 x user schools have received their first tranche of funding and will be submittinq evidence of expenditure in July 2016
12 KITT- KZN Interdepartmental technical task DARD The monthly meetings were changed to quarterly and 4 x KITT meetings team meetings were held
Letters were issued to the aooointed persons by the HOD. Participate in 10 District land agricultural District Offices committees 10 District Committee formed and Appointed by National Minister of DRDLR
TABLE 1.3 - Service Delivery Access Strategy
Access Strategy Actual Achievements
Increase KZN fleet by 40 vehicles & subsidized Additional 46 vehicles were ordered in 2015/2016. Delivery date expected to be in 2016/17 financial vehicles by 5% per annum year. 1 x Integrated Technology Systems framework
Data architecture (framework) developed and approved. 4 x Consultations undertaken with necessary stakeholder to identify business data and creation of data warehouse framework.
22 Offices be provided with internal & external Communication strategy approved in 2014. Reviewed and presented to EXCO in January 2015. signage Approved on 16/10/2015.
18 x Workshops conducted to create awareness of the communication strategy.
Spee had to be reviewed in light of cost reduction. Tender was re- advertised in February 2016 and BEC is scheduled to meet in the 2016/2017 financial year.
Translation of 8 brochures/ booklets in predominant lanquaqes 8 x brochures translated and distributed Develop policy on the recapitalisation of agricultural schools Policy approved on 1/4/2015.
Finalise 1 x MOU between OARD and Dept. of -MOA approved on 01/02/2016.Education on the recapitalisation of agricultural -Steering Committee has been appointed and approved.schools
Fund 4 x agricultural schools on infrastructure Implementation Plan approved - 01/02/2016
5 x user schools have received their first tranche of funding and will be submitting evidence of expenditure in July 2016.
Develop policy on identifying Department still in discussion regarding the development of a baseline for the classification of and classifying farmers farmers. Database is in the process of being developed by DAFF. Departmental input and
participation in this process has been rendered.
Agrarian transformation strategy/policy developed and approved on how to support to farmers i.e. household support/community investment /commercialisation.
4 x Workshops conducted with Districts to create awareness. 2500 farmers to be trained in agricultural 3258 farmers trained on agricultural techniques. techniques Establish 4 MOU's with commodity groups- 3 x MOU's developed & approved as follows: CITRUS Citrus approved on 20/8/15, NWGA approved on 25/11/15, Sugar Agency agreement approved on Banks 03/16; and Sugar Cane MOU for Sugar approved on 13/01/2016 NWGA
Agreement with Old Mutual Masisizane with focus on Harry Gwala Communal Estates pillar developed.
In the 2015/16 financial year, preparatory work was undertaken and the additional MOU's were prepared: MOU with Milk SA approved on 05/04/16, Milk producers organisation of KZN approved on 21/4/16, FAO approved on 02/02/16, SA Pork Producers on 15/3/16 and NEF approved 28/4/16.
2 x training agreement has been signed with UNIZULU & UKZN Establish 2 training agreements with tertiary institutions - UKZN & UNIZULU Partnership with UNIZULU approved on 18/12/2014. Development of funding agreement in process.
MOA with UKZN approved 29/05/2015. 10 Agri Parks Established Reports to MINMEC conducted.
10 District Agri Park plans approved
20 Industries supported in rural development 17 industries suooorted in the development of rural development in Quarter 4
TABLE 1.4 - Service Information Tool
Type of Information Tool
32 Radio slots
Produce 50 pamphlets
Produce 8 brochures per annum
Publish 12 publications
Actual Achievements
23 talk shows on mainstream radio
14 x pamphlets produced (7 x English, 7 x Zulu)
11 brochures
3 internal newsletters
2 x documents on electronic media
30 x research information packs
1 x goat production manual
3 x Research information days: Information day held at Bartlow on 19/09/2015, Livestock research information day on 9/3/2016, Research Information day at the Dundee Research Station on 16/3/2016
Participate in annual agricultural show(Royal I Participated in one agricultural show. show event)
Annual career Exhibition
Participated in one women in agriculture exhibition. Participated in 21 Career exhibitions
MEC Youth Summit hosted- Youth Portal launched on the Departmental website to assist unemployed graduates.
TABLE 1.5 • Com_e_laint Mechanism Complaint Mechanism Actual Achievements
Progress on Dependent on the implementation of a standardised complaints management system. complaints within 10 working days
Six (6) consultation meetings held with districts/local offices to institute a standardised complaints management system.
Complaints policy reviewed and analysis undertaken
Departmental Complaint boxes in all 35 boxes distributed to District and Local Offices. Departmental offices (70)
An interim appointment has been made to serve as the Departmental Complaints. The appointment Provision of a Departmental Ombudsperson hereof is pendinq the implementation of the new orqanisational structure.
TABLE 2.1 - Personnel costs by Programme
Programme Total Voted Compensation Training Professional Compensation Average Employment Expenditure of Employees Expenditure and Special of Employees Compensation (R'OOO) Expenditure (R'OOO) Services as percent of of Employees
(R'OOO) (R'OOO) Total Cost per Expenditure Employee
(R'OOO)
Administration 352 595 139 622 0 0 39 .6 49 2852
Aqriculture 1847 054 770 259 0 0 41.7 270 2852
Conservation 0 0 0 0 0 0 2852
Environmental management 0 0 0 0 0 0 2852
Rural development 1 891 1 542 0 0 81.5 1 2852
Z=Total as on Financial Systems (BAS) 2 201541 911 42 3 0 0 41.4 320 2852
TABLE 2.2 - Personnel cost by salary band
Salary Bands Compensation of Percentage of Average Total Personnel Number of Employees Cost Total Personnel Compensation Cost for Employees including Cost for Cost per Department Transfers (R'OOO) Department Employee (R) including Goods
and Services (R'OOO)
Lower skilled (Levels 1-2) 8 950 0.9 101 705 976 326 88
Skilled (Levels 3-5) 219 494 22.5 185 227 976 326 1185
Highly skilled production (Levels 6-8) 283 848 29.1 340 345 976 326 834
Highly skilled supervision (Levels 9-12) 335 779 34.4 537 246 976 326 625
Senior management (Levels 13-16) 46 430 4.8 1 055 227 976 326 44
Contract (Levels 1-2) 2 447 0.3 152 938 976 326 16
Contract (Levels 3-5) 4 960 0.5 215 652 976 326 23
Contract (Levels 6-8) 6 115 0.6 509 583 976 326 12
Contract (Levels 9-12) 12 529 1.3 569 500 976 326 22
Contract (Levels 13-16) 3 718 0.4 1 239 333 976 326 3
Periodical Remuneration 795 0.1 6 023 976 326 132
TOTAL 925065 94.7 310008 976326 2984
TABLE 2.3 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme
Programme Salaries Salaries Overtime Overtime HOA HOA as% Medical Medical Total (R'OOO) as %of (R'OOO) aso/oof (R'OOO) of Ass. Ass. as% Personnel
Personnel Personnel Personnel (R'OOO) of Cost per Cost Cost Cost Personnel Programme
Cost (R'OOO)
Administration 104320 71.6 796 0.5 3308 2.3 4948 3.4 145696
Aqriculture develop services 560480 67.6 3853 0.5 26629 3.2 34907 4.2 829368
Environmental management 84 93.3 0 0 1 1.1 1 1.1 90
Proq 1 :administration. 796 68 0 0 110 9.4 47 4 1171
TOTAL 665680 68.2 4649 0.5 30048 3.1 39903 4.1 976325
TABLE 2.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band
Salary bands Salaries Salaries Overtime Overtime HOA HOA as% Medical Medical Total (R'OOO) as% of (R'OOO) aso/oof (R'OOO) of Ass. Ass. as% Personnel
Personnel Personnel Personnel (R'OOO) of Cost per Cost Cost Cost Personnel Salary
Cost Band (R'OOO)
Lower skilled (Levels 1-2) 6311 70.2 296 3.3 587 6.5 491 5.5 8993
Skilled (Levels 3-5) 145715 66.2 2893 1.3 14288 6.5 16719 7.6 220019 Highly skilled production (Levels 6-8) 202829 69.1 688 0.2 9328 3.2 12702 4.3 293692 Highly skilled supervision (Levels 9-12) 245603 66.4 716 0.2 5406 1.5 9374 2.5 369682 Senior management (Levels 13-16) 38431 74.7 0 0 330 0.6 524 1 51444
Contract (Levels 1-2) 2420 97.2 6 0.2 0 0 0 0 2490
Contract (Levels 3-5) 4591 92.4 4 0.1 16 0.3 27 0.5 4967
Contract (Levels 6-8) 5628 91.4 0 0 21 0.3 9 0.1 6157
Contract (Levels 9-12) 10918 78.4 46 0.3 72 0.5 58 0.4 13920
Contract (Levels 13-16) 3235 77.7 0 0 0 0 0 0 4166
Periodical Remuneration 0 0 0 0 0 0 0 0 795
TOTAL 665681 68.2 4649 0.5 30048 3.1 39904 4.1 976325
TABLE 3.1 - Employment and Vacancies by Programme at end of period
Programme Number of Posts Number of Posts Filled Vacancy Rate Number of Posts Filled Additional to the Establishment
402 349 13.2 0
Administration, Permanent
2839 2443 13.9 0
Aariculture develoo services, Permanent
58 58 0 0
Aariculture develoo services, Temoorarv
0 0 0 0
Environmental manaqement, Permanent
2 2 0 0
Proq 1 :administration., Permanent
0 0 0 0
Rural development, Permanent
3301 2852 13.6 0 TOTAL
TABLE 3.2 - Employment and Vacancies by Salary Band at end of period
Salary Band Number of Number of Vacancy Number of Posts Posts Posts Filled Rate Filled Additional to
the Establishment
100 88 12 0 Lower skilled (Levels 1-2), Permanent
1332 1185 11 0 Skilled (Levels 3-5), Permanent
992 829 16.4 0 Hiqhly skilled production (Levels 6-8), Permanent
745 626 16 0 Highly skilled supervision (Levels 9-12), Permanent
4 4 0 0 Highly skilled supervision (Levels 9-12), Temporary
52 44 15.4 0 Senior management (Levels 13-16), Permanent
16 16 0 0 Contract (Levels 1-2), Permanent
23 23 0 0 Contract (Levels 3-5), Permanent
12 12 0 0 Contract (Levels 6-8), Permanent
22 22 0 0 Contract (Levels 9-12), Permanent
3 3 0 0 Contract (Levels 13-16), Permanent
3301 2852 13.6 0 TOTAL
TABLE 3.3 - Employment and Vacancies by Critical Occupation at end of period
Critical Occupations Number of Number of Vacancy Number of Posts
Posts Posts Filled Rate Filled Additional to
the Establishment
Administrative related, Permanent 97 43 55.7 0
Agricul animal oceanography forestry & other scien, Permanent 85 61 28.2 0
Agriculture related, Permanent 1519 338 77.7 0
Agriculture related, Temporary 1 1 0 0
All artisans in the building metal machinery etc., Permanent 30 4 86.7 0
Archivists curators and related professionals, Permanent 1 1 0 0
Artisan project and related superintendents, Permanent 10 2 80 0
Auxiliary and related workers, Permanent 93 41 55.9 0
Biochemistry pharmacol. zoology & life scie.techni, Permanent 510 136 73.3 0
Biologists botanists zoologists & rel professional, Permanent 4 4 0 0
Bookbinding and related machine operators, Permanent 2 2 0 0
Building and other property caretakers, Permanent 44 39 11.4 0
Bus and heavy vehicle drivers, Permanent 60 16 73.3 0
Civil engineering technicians, Permanent 11 10 9.1 0
Cleaners in offices workshops hospitals etc., Permanent 259 103 60.2 0
Client inform clerks(switchb recept inform clerks), Permanent 26 4 84.6 0
Communication and information related, Permanent 13 9 30.8 0
Community development workers, Permanent 1 1 0 0
Computer programmers., Permanent 2 1 50 0
Computer system designers and analysts., Permanent 20 2 90 0
Conservation labourers, Permanent 1 1 0 0
Economists, Permanent 39 14 64.1 0
Electrical and electronics engineering technicians, Permanent 1 1 0 0
Engineering sciences related, Permanent 21 11 47.6 0
Engineers and related professionals, Permanent 76 12 84.2 0
Farm hands and labourers, Permanent 1124 540 52 0
Farming forestry advisers and farm managers, Permanent 15 5 66.7 0
Finance and economics related, Permanent 29 15 48.3 0
Financial and related professionals, Permanent 49 24 51 0
Financial clerks and credit controllers, Permanent 130 57 56.2 0
Food services aids and waiters, Permanent 7 1 85.7 0
Forestry labourers, Permanent 7 6 14.3 0
General legal administration & rel. professionals, Permanent 16 3 81.3 0
Geologists geophysicists hydrologists & relat prof, Permanent 4 0 100 0
Health sciences related, Permanent 1 1 0 0
Horticulturists foresters agricul.& forestry techn, Permanent 499 424 15 0
Household and laundry workers, Permanent 25 9 64 0
Household food and laundry services related, Permanent 5 5 0 0
Housekeepers laundry and related workers, Permanent 24 9 62.5 0
Human resources & organisat developm & relate prof, Permanent 76 23 69.7 0
Human resources clerks, Permanent 191 86 55 0
Human resources related, Permanent 162 28 82.7 0
Information technology related, Permanent 1 1 0 0
Language practitioners interpreters & other commun, Permanent 39 9 76.9 0
Legal related, Permanent 1 1 0 0
Librarians and related professionals, Permanent 10 3 70 0
Library mail and related clerks, Permanent 4 2 50 0
Life sciences related, Permanent 1 0 100 0
Light vehicle drivers, Permanent 32 26 18.8 0
Logistical support personnel, Permanent 26 25 3.8 0
Material-recording and transport clerks, Permanent 2 1 so 0
Mechanical engineering thechnicians, Permanent 9 8 11.1 0
Messengers porters and deliverers, Permanent 28 23 17.9 0
Motor vehicle drivers, Permanent 74 49 33.8 0
Motorised farm and forestry plant operators, Permanent 56 5 91.1 0
Natural sciences related, Permanent 15 5 66.7 0
Nature conservation and oceanographical rel.techni, Permanent 1 1 0 0
Other administrat & related clerks and organisers, Permanent 555 200 64 0
Other administrative policy and related officers, Permanent 95 22 76.8 0
Other information technology personnel., Permanent 6 2 66.7 0
Other machine operators, Permanent 65 4 93.8 0
Other occupations, Permanent 218 71 67.4 0
Photographic lithographic and related workers, Permanent 1 0 100 0
Production advisers: factories, Permanent 2 2 0 0
Risk management and security services, Permanent 26 3 88.5 0
Safety health and quality inspectors, Permanent 6 5 16.7 0
Saps, Permanent 1 1 0 0
Secretaries & other keyboard operating clerks, Permanent 105 43 59 0
Security guards, Permanent 253 149 41.1 0
Security officers, Permanent 9 3 66.7 0
Senior managers, Permanent 102 30 70.6 0
Social sciences related, Permanent 11 0 100 0
Statisticians and related professionals, Permanent 4 1 75 0
Trade labourers, Permanent 10 2 80 0
Veterinarians, Permanent 78 42 46.2 0
Veterinary assistants, Permanent 34 19 44.1 0
Water plant and related operators, Permanent 1 1 0 0
TOTAL 3301 2852 13.6 0
4. JOB EVALUATION
TABLE 4.1 · Job Evaluation
Salary Band Number Number of Jobs % of Posts Number of %of Number of %of of Posts Evaluated Evaluated Posts Upgraded Posts Downgraded
Upgraded Posts Downgraded Posts Evaluated Evaluated
100 Lower skilled (Levels 1-2) 0 0 0 0 0 0
16
Contract (Levels 1-2) 0 0 0 0 0 0 23
Contract (Levels 3-5) 0 0 0 0 0 0 12
Contract (Levels 6-8) 0 0 0 0 0 0 22
Contract (Levels 9-12) 0 0 0 0 0 0 1
Contract (Band A) 0 0 0 0 0 0 1
Contract (Band B) 0 0 0 0 0 0 1
Contract (Band D) 0 0 0 0 0 0 1332
Skilled (Levels 3-5) 0 0 0 0 1 0 992 no of posts = 61
Highly skilled production (Levels 6-8) evaluations = 17 2.98% 0 0 3 4.91%
745 No of posts= 147 Highly skilled supervision (Levels 9-12) evaluations = 48 7.93% 0 0 0 0
41 No of posts = 22 Senior Management Service Band A Evaluations = 08 22% 0 0 0 0
9 No of posts = 05 Senior Manaaement Service Band B Evaluations = 05 31.25% 0 0 0 0
4 Senior Manaaement Service Band C 0 0 0 0 0 0
2 Senior Management Service Band D 0 0 0 0 0 0
3301 TOTAL 3,277% 0 0 0 4 0
TABLE 4.2 - Profile of employees whose positions were upgraded due to their posts being upgraded
Beneficiaries African Asian Coloured White Total
Female 0 0 0 0 0
Male 0 0 0 0 0
Total 0 0 0 0 0
Employees with a Disability 0 0 0 0 0
TABLE 4.3 - Employees whose salary level exceed the grade determined by Job Evaluation [i.t.o PSR 1.V.C.3]
Occupation Number of Job Evaluation Remuneration Reason for No of Employees Employees Level Level Deviation in Dept
XXX 0 XXX XXX XXX
XXX 0 XXX XXX XXX
Total 0
Percentage of Total Employment 0 0
TABLE 4.4 -Profile of employees whose salary level exceeded the grade determined by job evaluation [i.t.o. PSR 1.V.C.3]
Beneficiaries African Asian Coloured White Total
Female 0 0 0 0 0
Male 0 0 0 0 0
Total 0 0 0 0 0
Employees with a Disability 0 0 0 0 0
TABLE 5.1 -Annual Turnover Rates by Salary Band
Salary Band Employment Appointments Terminations Turnover at Rate Beginning of Period (April 2015)
Lower skilled (Levels 1-2), Permanent 51 30 1 2
Skilled (Levels 3-5), Permanent 1249 22 82 6.6
Highly skilled production (Levels 6-8), Permanent 828 73 27 3.3
Highly skilled supervision (Levels 9-12), Permanent 585 11 33 5.6
Highly skilled supervision (Levels 9-12), Temporary 1 0 0 0
Senior Management Service Band A, Permanent 36 0 1 2.8
Senior Management Service Band B, Permanent 4 0 0 0
Senior Management Service Band C, Permanent 3 0 0 0
Senior Manaqement Service Band D, Permanent 1 0 0 0
Contract (Levels 1-2), Permanent 47 18 29 61.7
Contract (Levels 3-5), Permanent 27 5 7 25.9
Contract (Levels 6-8), Permanent 23 1 3 13
Contract (Levels 9-12), Permanent 22 3 2 9.1
Contract (Band A), Permanent 2 1 1 50
Contract (Band B), Permanent 1 1 0 0
TOTAL 2880 165 186 6.5
TABLE 5.2 -Annual Turnover Rates by Critical Occupation
Occupation Employment at Appointments Terminations Turnover Rate Beginning of Period (April 2015)
Administrative related, Permanent 49 4 7 14.3
Agricul animal oceanography forestry & other scien, Permanent 62 3 1 1.6
Agriculture related, Permanent 241 50 10 4.1
Agriculture related, Temporary 1 0 0 0
All artisans in the building metal machinery etc., Permanent 4 0 0 0
Archivists curators and related professionals, Permanent 1 0 0 0
Artisan project and related superintendents, Permanent 3 0 1 33.3
Auxiliary and related workers, Permanent 44 0 1 2.3
Biochemistry pharmacol. zooloov & life scie.techni, Permanent 143 4 4 2.8
Biologists botanists zoologists & rel professional, Permanent 3 0 0 0
Bookbinding and related machine operators, Permanent 2 0 0 0
Building and other property caretakers, Permanent 42 0 4 9.5
Bus and heavy vehicle drivers, Permanent 18 1 4 22.2
Civil engineering technicians, Permanent 10 0 0 0
Cleaners in offices workshops hospitals etc., Permanent 101 6 6 5.9
Client inform clerks(switchb recept inform clerks), Permanent 4 0 0 0
Communication and information related, Permanent 10 0 1 10
Community development workers, Permanent 1 0 0 0
Computer programmers., Permanent 1 0 0 0
Computer system designers and analysts., Permanent 3 0 1 33.3
Conservation labourers, Permanent 1 0 0 0
Economists, Permanent 12 2 2 16.7
Electrical and electronics engineering technicians, Permanent 2 0 1 50
Engineering sciences related, Permanent 11 0 0 0
Engineers and related professionals, Permanent 13 0 2 15.4
Farm hands and labourers, Permanent 576 25 39 6.8
Farminq forestry advisors and farm manaqers, Permanent 5 0 0 0
Finance and economics related, Permanent 16 0 0 0
Financial and related professionals, Permanent 26 1 2 7.7
Financial clerks and credit controllers, Permanent 73 1 13 17.8
Food services aids and waiters, Permanent 1 0 0 0
Forestry labourers, Permanent 6 0 0 0
General legal administration & rel. professionals, Permanent 2 1 1 50
Health sciences related, Permanent 1 0 0 0
Horticulturists foresters agricul.& forestry techn, Permanent 456 14 11 2.4
Household and laundry workers, Permanent 9 0 0 0
Household food and laundry services related, Permanent 3 1 0 0
Housekeepers laundry and related workers, Permanent 9 0 0 0
Human resources & organisat developm & relate prof, Permanent 25 1 3 12
Human resources clerks, Permanent 80 5 2 2.5
Human resources related, Permanent 28 1 1 3.6
Information technology related, Permanent 1 0 0 0
Lanquaqe practitioners interpreters & other commun, Permanent 10 0 1 10
Legal related, Permanent 1 0 0 0
Librarians and related professionals, Permanent 3 0 0 0
Library mail and related clerks, Permanent 2 0 0 0
Light vehicle drivers, Permanent 30 0 3 10
Logistical support personnel, Permanent 27 0 1 3.7
Material-recording and transport clerks, Permanent 1 0 0 0
Mechanical engineering thechnicians, Permanent 8 0 0 0
Messengers porters and deliverers, Permanent 24 0 1 4.2
Motor vehicle drivers, Permanent 50 3 5 10
Motorised farm and forestry plant operators, Permanent 11 0 0 0
Natural sciences related, Permanent 5 3 0 0
Nature conservation and oceanographical rel.techni, Permanent 1 0 0 0
Other administrat & related clerks and orqanisers, Permanent 190 32 28 14.7
Other administrative policy and related officers, Permanent 22 0 3 13.6
Other information technology personnel., Permanent 2 0 0 0
Other machine operators, Permanent 4 0 0 0
Other occupations, Permanent 72 0 6 8.3
Production advisers : factories, Permanent 2 0 0 0
Risk management and security services, Permanent 3 0 0 0
Safety health and quality inspectors, Permanent 5 0 0 0
Saps, Permanent 1 0 0 0
Secretaries & other keyboard operating clerks, Permanent 44 1 1 2.3
Security quards, Permanent 162 2 18 11.1
Security officers, Permanent 3 0 0 0
Senior managers, Permanent 30 2 1 3.3
Statisticians and related professionals, Permanent 1 0 0 0
Trade labourers, Permanent 2 0 0 0
Veterinarians, Permanent 43 2 1 2.3
Veterinary assistants, Permanent 19 0 0 0
Water plant and related operators, Permanent 3 0 0 0
TOTAL 2880 165 186 6.5
TABLE 5.3 - Reasons why staff are leaving the Department
Termination Type Number Percentage of Total Percentage of Total Total Total Employment
Resignations Employment
Death, Permanent 25 13.4 0.9 186 2880
Resignation, Permanent 41 22 1.4 186 2880
Expiry of contract, Permanent 36 19.4 1.3 186 2880
Dismissal-misconduct, Permanent 2 1.1 0.1 186 2880
Retirement, Permanent 82 44.1 2.8 186 2880
TOTAL 186 100 6.5 186 2880
TABLE 5.4 - Granting of Employee Initiated Severance Packages
Category No of No of No of No of applications applications applications Packages received referred to supported approved by
the MPSA byMPSA department
Lower Skilled (Salary Level 1-2) 0 0 0 0
Skilled (Salary Level 3-5) 0 0 0 0
Hiqhly Skilled Production (Salary Level 6-8) 0 0 0 0
Hiqhly Skilled Production (Salary Level 9-12) 0 0 0 0
Senior Management (Salary Level 13 and higher) 0 0 0 0
Total 0 0 0 0
TABLE 5.5 - Promotions by Critical Occupation
Occupation Employment Promotions to Salary Level Progressions to Notch at Beginning another Salary Promotions as a another Notch progressions as a of Period Level %of within Salary % of Employment (April 2015) Employment Level
Administrative related 49 0 0 34 69.4
Agricul animal oceanography forestry & other scien 62 0 0 32 51.6
Agriculture related 242 51 21.1 159 65.7
All artisans in the building metal machinery etc. 4 1 25 1 25
Archivists curators and related professionals 1 0 0 1 100
Artisan project and related superintendents 3 0 0 0 0
Auxiliary and related workers 44 1 2.3 29 65.9
Biochemistry pharmacol. zooloav & life scie.techni 143 1 0.7 99 69.2
Biologists botanists zoologists & rel professional 3 0 0 2 66.7
Bookbindinq and related machine operators 2 0 0 0 0
Building and other property caretakers 42 1 2.4 18 42.9
Bus and heavy vehicle drivers 18 0 0 10 55.6
Civil enqineerinq technicians 10 0 0 7 70
Cleaners in offices workshops hospitals etc. 101 0 0 1 1
Client inform clerks(switchb recept inform clerks) 4 0 0 4 100
Communication and information related 10 0 0 5 50
Community development workers 1 0 0 1 100
Computer programmers. 1 0 0 0 0
Computer system desiqners and analysts. 3 0 0 1 33.3
Conservation labourers 1 0 0 0 0
Economists 12 1 8.3 8 66.7
Electrical and electronics enqineerinq technicians 2 0 0 0 0
Engineering sciences related 11 0 0 0 0
Enqineers and related professionals 13 0 0 9 69.2
Farm hands and labourers 576 1 0.2 235 40.8
Farming forestry advisors and farm managers 5 0 0 3 60
Finance and economics related 16 1 6.3 12 75
Financial and related professionals 26 3 11.5 21 80.8
Financial clerks and credit controllers 73 0 0 42 57.5
Food services aids and waiters 1 0 0 0 0
Forestry labourers 6 0 0 2 33.3
General legal administration & rel. professionals 2 0 0 1 50
Health sciences related 1 0 0 0 0
Horticulturists foresters agricul.& forestry techn 456 0 0 246 53.9
Household and laundry workers 9 0 0 3 33.3
Household food and laundry services related 3 0 0 1 33.3
Housekeepers laundry and related workers 9 0 0 2 22.2
Human resources & organisat developm & relate prof 25 0 0 20 80
Human resources clerks 80 1 1.3 62 77.5
Human resources related 28 1 3.6 18 64.3
Information technoloqy related 1 0 0 0 0
Language practitioners interpreters & other commun 10 0 0 8 80
Legal related 1 0 0 1 100
Librarians and related professionals 3 0 0 2 66.7
Library mail and related clerks 2 0 0 2 100
Light vehicle drivers 30 0 0 14 46.7
Loqistical support personnel 27 0 0 0 0
Material-recording and transport clerks 1 0 0 1 100
Mechanical engineering thechnicians 8 0 0 7 87.5
Messenqers porters and deliverers 24 0 0 0 0
Motor vehicle drivers 50 0 0 37 74
Motorised farm and forestry plant operators 11 0 0 1 9.1
Natural sciences related 5 0 0 1 20
Nature conservation and oceanographical rel.techni 1 0 0 0 0
Other administrat & related clerks and organisers 190 2 1.1 127 66.8
Other administrative policy and related officers 22 1 4.5 15 68.2
Other information technoloqv personnel. 2 0 0 2 100
Other machine operators 4 0 0 3 75
Other occupations 72 0 0 9 12.5
Production advisers : factories 2 0 0 2 100
Risk manaqement and security services 3 0 0 2 66.7
Safety health and quality inspectors 5 0 0 3 60
Saps 1 0 0 0 0
Secretaries & other keyboard operatinq clerks 44 0 0 22 50
Security guards 162 0 0 2 1.2
Security officers 3 0 0 2 66.7
Senior manaqers 30 0 0 16 53.3
Statisticians and related professionals 1 0 0 1 100
Trade labourers 2 0 0 0 0
Veterinarians 43 0 0 30 69.8
Veterinary assistants 19 0 0 15 78.9
Water plant and related operators 3 0 0 0 0
TOTAL 2880 66 2.3 1414 49.1
TABLE 5.6 - Promotions by Salary Band
Salary Band Employment Promotions to Salary Level Progressions to Notch at Beginning another Salary Promotions as a another Notch progressions as of Period Level %of within Salary ao/oof (April 2015) Employment Level Employment
Lower skilled (Levels 1-2), Permanent 51 0 0 0 0 Skilled (Levels 3-5), Permanent 1249 3 0.2 439 35.1
Highly skilled production (Levels 6-8), Permanent 828 7 0.8 629 76
Highly skilled supervision (Levels 9-12), Permanent 585 56 9.6 290 49.6
Hiqhly skilled supervision (Levels 9-12), Temporary 1 0 0 1 100
Senior management (Levels 13-16), Permanent 44 0 0 20 45.5
Contract (Levels 1-2), Permanent 47 0 0 0 0
Contract (Levels 3-5), Permanent 27 0 0 14 51.9
Contract (Levels 6-8), Permanent 23 0 0 13 56.5
Contract (Levels 9-12), Permanent 22 0 0 6 27.3
Contract (Levels 13-16), Permanent 3 0 0 2 66.7 TOTAL 2880 66 2.3 1414 49.1
TABLE 6.1 - Total number of Employees (incl. Employees with disabilities) per Occupational Category (SASCO)
Occupational Categories Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Colour Indian Total White African Coloured Indian Total White
ed Blacks Blacks
Legislators, senior officials and managers, 13 0 1 14 2 11 0 1 12 3 31
Permanent
Professionals, Permanent 249 4 15 268 45 238 2 27 267 27 607
Professionals, Temporary 0 0 0 0 0 0 0 0 0 1 1
Technicians and associate professionals, 371 2 7 380 25 313 2 13 328 12 745
Permanent
Clerks, Permanent 114 0 2 116 0 235 8 21 264 13 393
Service and sales workers, Permanent 144 0 0 144 0 26 0 0 26 0 170
Craft and related trades workers, 7 0 1 8 0 0 0 0 0 0 8
Permanent
Plant and machine operators and 100 0 0 100 0 3 0 0 3 0 103
assemblers, Permanent
Elementary occupations, Permanent 457 1 1 459 2 330 0 3 333 0 794
TOTAL 1455 7 27 1489 74 1156 12 65 1233 56 2852
Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Colour Indian Total White African Coloured Indian Total White
ed Blacks Blacks
Employees with disabilities 11 0 0 11 1 5 0 0 5 1 18
TABLE 6.2 -Total number of Employees (incl. Employees with disabilities) per Occupational Bands
Occupational Bands Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
Top Management, Permanent 1 0 0 1 1 2 0 0 2 0 4
Senior Management, Permanent 16 0 1 17 7 11 1 1 13 3 40
Professionally qualified and experienced 294 5 19 318 57 197 1 24 222 26 623
specialists and mid-management,
Permanent
Professionally qualified and experienced 0 0 0 0 0 0 0 0 0 1 1
specialists and mid-management,
Temporary
Skilled technical and academically 313 1 4 318 7 448 6 34 488 21 834
qualified workers, junior management,
supervisors, foremen, Permanent
Semi-skilled and discretionary decision 748 1 3 752 2 419 4 6 429 2 1185
making, Permanent
Unskilled and defined decision making, 51 0 0 51 0 38 0 0 38 0 89
Permanent
Contract (Top Management), Permanent 1 0 0 1 0 0 0 0 0 0 1
Contract (Senior Management), 0 0 0 0 0 1 0 0 1 1 2
Permanent
Contract {Professionally qualified), 11 0 0 11 0 9 0 0 9 2 22
Permanent
Contract (Skilled technical), Permanent 5 0 0 5 0 7 0 0 7 0 12
Contract (Semi-skilled), Permanent 8 0 0 8 0 15 0 0 15 0 23
Contract (Unskilled), Permanent 7 0 0 7 0 9 0 0 9 0 16
TOTAL 1455 7 27 1489 74 1156 12 65 1233 56 2852
TABLE 6.3 - Recruitment
Occupational Bands Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
Professionally qualified and experienced 7 0 0 7 1 2 0 0 2 1 11
specialists and mid-management,
Permanent
Skilled technical and academically 32 0 1 33 0 40 0 0 40 0 73
qualified workers, junior management,
supervisors, foremen, Permanent
Semi-skilled and discretionary decision 14 0 0 14 0 8 0 0 8 0 22
making, Permanent
Unskilled and defined decision making, 14 0 0 14 0 16 0 0 16 0 30
Permanent
Contract {Senior Management), 0 0 0 0 0 1 0 0 1 1 2
Permanent
Contract (Professionally qualified), 0 0 0 0 0 2 0 0 2 1 3
Permanent
Contract (Skilled technical), Permanent 0 0 0 0 0 1 0 0 1 0 1
Contract (Semi-skilled), Permanent 2 0 0 2 0 3 0 0 3 0 5
Contract (Unskilled), Permanent 8 0 0 8 0 10 0 0 10 0 18
TOTAL 77 0 1 78 1 83 0 0 83 3 165
Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
TABLE 6.4 - Promotions
Occupational Bands Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
Senior Management, Permanent 8 0 0 8 4 5 1 1 7 1 20
Professionally qualified and 150 5 12 167 30 109 1 20 130 19 346
experienced specialists and mid-
management, Permanent
Professionally qualified and 0 0 0 0 0 0 0 0 0 1 1
experienced specialists and mid-
management, Temporary
Skilled technical and academically 223 1 3 227 6 350 5 30 385 18 636
qualified workers, junior management,
supervisors, foremen, Permanent
Semi-skilled and discretionary decision 230 0 0 230 1 201 3 5 209 2 442
making, Permanent
Contract {Senior Management), 0 0 0 0 0 2 0 0 2 0 2
Permanent
Contract (Professionally qualified), 3 0 0 3 0 3 0 0 3 0 6
Permanent
Contract (Skilled technical), Permanent 6 0 0 6 0 7 0 0 7 0 13
Contract {Semi-skilled), Permanent 4 0 0 4 0 10 0 0 10 0 14
TOTAL 624 6 15 645 41 687 10 56 753 41 1480
Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
Employees with disabilities 3 0 0 3 0 2 0 0 2 1 6
TABLE 6.5 -Terminations
Occupational Bands Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
Senior Management, Permanent 1 0 0 1 0 0 0 0 0 0 1
Professionally qualified and experienced 21 0 0 21 3 7 0 0 7 2 33
specialists and mid-management,
Permanent
Skilled technical and academically 4 0 1 5 0 20 0 1 21 1 27
qualified workers, junior management,
supervisors, foremen, Permanent
Semi-skilled and discretionary decision 65 0 0 65 1 16 0 0 16 0 82
making, Permanent
Unskilled and defined decision making, 0 0 0 0 0 1 0 0 1 0 1
Permanent
Contract (Senior Management), 1 0 0 1 0 0 0 0 0 0 1
Permanent
Contract (Professionally qualified), 2 0 0 2 0 0 0 0 0 0 2
Permanent
Contract {Skilled technical), Permanent 1 0 0 1 0 1 0 0 1 1 3
Contract (Semi-skilled), Permanent 4 0 0 4 0 3 0 0 3 0 7
Contract (Unskilled), Permanent 7 0 0 7 0 22 0 0 22 0 29
TOTAL 106 0 1 107 4 70 0 1 71 4 186
Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
Employees with disabilities 4 0 0 4 0 1 0 0 1 0 5
TABLE 6.6 - Disciplinary Action
Disciplinary action Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
TOTAL 59 0 1 59 03 40 0 02 40 00 105
TABLE 6.7 - Skills Development
Occupational Categories Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total
African Coloured Indian Total White African Coloured Indian Total White
Blacks Blacks
Legislators, Senior Officials and 0 0 0 0 0 0 0 0 0 0 0
Managers
Professionals 0 0 0 0 0 0 0 0 0 0 0
Technicians and Associate 0 0 0 0 0 0 0 0 0 0 0
Professionals
Clerks 0 0 0 0 0 0 0 0 0 0 0
Service and Sales Workers 0 0 0 0 0 0 0 0 0 0 0
Skilled Agriculture and Fishery 0 0 0 0 0 0 0 0 0 0 0
Workers
Craft and related Trades Workers 0 0 0 0 0 0 0 0 0 0 0
Plant and Machine Operators and 0 0 0 0 0 0 0 0 0 0 0
Assemblers
Elementary Occupations 0 0 0 0 0 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0 0 0 0 0 0
Employees with disabilities 0 0 0 0 0 0 0 0 0 0 0
TABLE 7.1 • Performance Rewards by Race, Gender and Disability
Demographics Number of Total Percentage of Cost Average Cost Beneficiaries Employment Total (R'OOO) per Beneficiary
Employment (R)
African, Female 228 1151 19.8 2 923 12 820
African, Male 269 1444 18.6 3 729 13 864
Asian, Female 34 65 52.3 655 19 256
Asian, Male 14 27 51.9 351 25 059
Coloured, Female 6 12 50 116 19 309
Coloured, Male 5 7 71.4 105 20 984
Total Blacks, Female 268 1228 21.8 3 693 13 782
Total Blacks, Male 288 1478 19.5 4 185 14 531
White, Female 26 55 47.3 543 20 868
White, Male 30 73 41.1 824 27 469
Employees with a disability 4 18 22.2 46 11 437
TOTAL 616 2852 21.6 9 291 15 083
TABLE 7.2 - Performance Rewards by Salary Band for Personnel below Senior Management Service
Salary Band Number of Total Percentage of Cost Average Cost Beneficiaries Employment Total (R'OOO) per Beneficiary
Employment (R)
Lower skilled (Levels 1-2) 3 88 3.4 19 6 333
Skilled (Levels 3-5) 220 1185 18.6 1 607 7 305
Highly skilled production (Levels 6-8) 195 834 23.4 2 820 14 462
Highly skilled supervision (Levels 9-12) 192 625 30.7 4 669 24 318
Contract (Levels 1-2) 0 16 0 0 0
Contract (Levels 3-5) 0 23 0 0 0
Contract (Levels 6-8) 1 12 8.3 19 19 OOO
Contract (Levels 9-12) 4 22 18.2 114 28 500
Periodical Remuneration 0 132 0 0 0
TOTAL 615 2937 20.9 9248 15037
TABLE 7.3 - Performance Rewards by Critical Occupation
Critical Occupations Number of Total Percentage of Cost Average Cost Beneficiaries Employment Total (R'OOO) per Beneficiary
Employment (R)
Administrative related 14 43 32.6 264 18 857
Aqricul animal oceanoqraphy forestry & other scien 14 61 23 290 20 714
Aqriculture related 88 338 26 1 759 19 989
All artisans in the building metal machinery etc. 1 4 25 16 16 OOO
Archivists curators and related professionals 0 1 0 0 0
Artisan project and related superintendents 1 2 50 10 10 OOO
Auxiliary and related workers 16 41 39 149 9 313
Biochemistry pharmacol. zoology & life scie.techni 46 136 33.8 840 18 261
Biologists botanists zoologists & rel professional 1 4 25 7 7 OOO
Bookbinding and related machine operators 0 2 0 0 0
Building and other property caretakers 3 39 7.7 20 6 667
Bus and heavy vehicle drivers 5 16 31.3 41 8 200
Civil engineering technicians 3 10 30 74 24 667
Cleaners in offices workshops hospitals etc. 18 103 17.5 129 7 167
Client inform clerks(switchb recept inform clerks) 0 4 0 0 0
Communication and information related 0 9 0 0 0
Community development workers 0 1 0 0 0
Computer programmers. 1 1 100 11 11 OOO
Computer system designers and analysts. 2 2 100 51 25 500
Conservation labourers 0 1 0 0 0
Economists 2 14 14.3 63 31 500
Electrical and electronics engineering technicians 0 1 0 0 0
Enqineerinq sciences related 1 11 9.1 43 43 OOO
Enoineers and related professionals 6 12 50 187 31 167
Farm hands and labourers 96 540 17.8 708 7 375
Farminq forestry advisors and farm manaoers 1 5 20 15 15 OOO
Finance and economics related 12 15 80 333 27 750
Financial and related professionals 9 24 37.5 192 21 333
Financial clerks and credit controllers 16 57 28.1 212 13 250
Food services aids and waiters 0 1 0 0 0
Forestry labourers 3 6 50 20 6 667
General legal administration & rel. professionals 2 3 66.7 68 34 OOO
Health sciences related 0 1 0 0 0
Horticulturists foresters aqricul.& forestry techn 77 424 18.2 1 430 18 571
Household and laundry workers 4 9 44.4 28 7 OOO
Household food and laundry services related 1 5 20 5 5 OOO
Housekeepers laundry and related workers 4 9 44.4 28 7 OOO
Human resources & organisat developm & relate prof 5 23 21.7 77 15 400
Human resources clerks 20 86 23.3 233 11 650
Human resources related 12 28 42.9 314 26 167
Information technoloqv related 0 1 0 0 0
Language practitioners interpreters & other commun 0 9 0 0 0
Legal related 1 1 100 40 40 OOO
Librarians and related professionals 1 3 33.3 17 17 OOO
Library mail and related clerks 0 2 0 0 0
Light vehicle drivers 8 26 30.8 65 8 125
Loqistical suooort personnel 0 25 0 0 0
Material-recordinq and transport clerks 0 1 0 0 0
Mechanical enqineerinq thechnicians 1 8 12.5 14 14 OOO
Messenqers porters and deliverers 5 23 21.7 57 11 400
Motor vehicle drivers 10 49 20.4 72 7 200
Motorised farm and forestry plant operators 0 5 0 0 0
Natural sciences related 1 5 20 24 24 OOO
Nature conservation and oceanographical rel.techni 0 1 0 0 0
Other administrat & related clerks and organisers 41 200 20.5 508 12 390
Other administrative policy and related officers 11 22 50 194 17 636
Other information technoloqy personnel. 0 2 0 0 0
Other machine operators 3 4 75 16 5 333
Other occupations 9 71 12.7 85 9 444
Production advisers : factories 1 2 50 10 10 OOO
Rank: Unknown 0 1 0 0 0
Risk management and security services 0 3 0 0 0
Safety health and quality inspectors 0 5 0 0 0
Saps 0 1 0 0 0
Secretaries & other keyboard operating clerks 17 43 39.5 204 12 OOO
Security guards 9 149 6 67 7 444
Security officers 1 3 33.3 14 14 OOO
Senior manaqers 0 30 0 0 0
Statisticians and related professionals 0 1 0 0 0
Trade labourers 0 2 0 0 0
Veterinarians 11 42 26.2 246 22 364
Veterinary assistants 2 19 10.5 41 20 500
Water plant and related operators 0 1 0 0 0
TOTAL 616 2852 21.6 9291 15083
TABLE 7.4 - Performance Related Rewards {Cash Bonus) by Salary Band for Senior Management Service
SMS Band Number of Total Percentage of Cost (R'OOO) Average Cost %ofSMS Personnel
Beneficiaries Employment Total per Wage Bill CostSMS
Employment Beneficiary (R'OOO)
(R)
Band A 1 37 2.7 43 43 OOO 0.1 40935
Band B 0 5 0 0 0 0 0
Band C 0 3 0 0 0 0 0
Band D 0 2 0 0 0 0 0
TOTAL 1 47 2.1 43 43000 0.1 40935
TABLE 8.1 - Foreign Workers by Salary Band
Salary Band Employme Percentag Employme Percentag Change in Percentag Total Total Total
nt at e of Total nt at End e of Total Employme e of Total Employme Employme Change in
Beginning of Period nt nt at nt at End Employme
Period Beginning of Period nt
of Period
Skilled (Levels 3-5) 1 9.1 1 8.3 0 0 11 12 1
Highly skilled production 0 0 1 8.3 1 100 11 12 1
(Levels 6-8)
Highly skilled supervision 7 63.6 6 50 -1 -100 11 12 1
(Levels 9-12)
Contract (Levels 9-12) 3 27.3 4 33.3 1 100 11 12 1
TOTAL 11 100 12 100 1 100 11 12 1
TABLE 8.2 - Foreign Workers by Major Occupation
Major Occupation Employme Percentag Employme Percentag Change in Percentag Total Total Total
nt at e of Total nt at End e of Total Employme e of Total Employme Employme Change in
Beginning of Period nt nt at nt at End Employme
Period Beginning of Period nt
of Period
Administrative office workers 1 9.1 1 8.3 0 0 11 12 1
Professionals and managers 8 72.7 9 75 1 100 11 12 1
Technicians and associated 2 18.2 2 16.7 0 0 11 12 1
professionals
TOTAL 11 100 12 100 1 100 11 12 1
TABLE 9.1- Sick Leave for Jan 2015 to Dec 2015
Salary Band Total Days % Days with Number of % of Total Average Estimated Total Total
Medical Employees Employees Days per Cost (R'OOO) number of number of
Certification using Sick using Sick Employee Employees days with
Leave Leave using Sick medical
Leave certification
Lower skilled (Levels 1-2) 182 95.1 27 1.9 7 84 1396 173
Skilled (Levels 3-5) 3897 90.4 547 39.2 7 2 388 1396 3523
Highly skilled production (Levels 6- 3271 84.8 443 31.7 7 3 937 1396 2775
8)
Highly skilled supervision (Levels 9- 2024 88.7 310 22.2 7 3 682 1396 1796
12)
Senior management (Levels 13-16) 158 89.2 23 1.6 7 560 1396 141
Contract (Levels 1-2) 58 63.8 12 0.9 5 17 1396 37
Contract (Levels 3-5) 85 89.4 15 1.1 6 53 1396 76
Contract (Levels 6-8) 54 92.6 11 0.8 5 58 1396 50
TABLE 9.2 - Disability Leave (Temporary and Permanent) for Jan 2015 to Dec 2015
Salary Band Total Days %Days with Number of % of Total Average Estimated Total Total
Medical Employees Employees Days per Cost (R'OOO) number of number of
Certification using using Employee days with Employees
Disability Disability medical using
Leave Leave certification Disability
Leave
Lower skilled (Levels 1-2) 18 100 4 3.6 5 9 18 111
Skilled (Levels 3-5) 1305 99.9 40 36 33 775 1304 111
Highly skilled production (Levels 6- 1198 100 41 36.9 29 1 379 1198 111
8)
Highly skilled supervision (Levels 9- 519 100 22 19.8 24 925 519 111
12)
Senior management (Levels 13-16) 33 100 2 1.8 17 105 33 111
Contract (Levels 3-5) 22 100 1 0.9 22 14 22 111
Contract (Levels 6-8) 39 100 1 0.9 39 40 39 111
TOTAL 3134 100 111 100 28 3247 3133 111
TABLE 9.3 -Annual Leave for Jan 2015 to Dec 2015
Salary Band Total Days Taken Average days per Number of Employees who took
Employee leave
Lower skilled {Levels 1-2) 978 15 65
Skilled {Levels 3-5) 27550.75 24 1148
Highly skilled production {Levels 6-8) 18869.92 23 823
Highly skilled supervision {Levels 9-12) 14321 23 632
Senior management {Levels 13-16) 859 21 41
Contract {Levels 1-2) 226 8 30
Contract {Levels 3-5) 166 7 23
Contract (Levels 6-8) 131 10 13
Contract {Levels 9-12) 235 10 24
Contract (Levels 13-16) 16 8 2
TOTAL 63352.67 23 2801
TABLE 9.4 - Capped Leave for Jan 2015 to Dec 2015
Salary Band Total days of Average number Average capped
capped leave of days taken per leave per
taken employee employee as at 31
December 2015
Skilled {Levels 3-5) 95 5 101
Highly skilled production {Levels 6-8) 98 8 79
Highly skilled supervision (Levels 9-12) 51 5 138
Senior management (Levels 13-16) 3 2 123
TOTAL 247 6 105
TABLE 9.5 - Leave Payouts
Reason Total Amount Number of Average Payment
(R'OOO) Employees per Employee (R)
Leave payout for 2015/16 due to non-utilisation of leave for the 218 1 218000
previous cycle
Capped leave payouts on termination of service for 2015/16 15 236 208 73250
Current leave payout on termination of service for 2015/16 2 135 72 29653
TOTAL 17589 281 62594
TABLE 10 - Details of Health Promotion and HIV/AIDS Programmes [tick Yes/No and provide required information]
Question Yes No Details, if yes
1. Has the department designated a member of the SMS to implement the The CH: HRM is the designated SMS member
provisions contained in Part VI E of Chapter 1 of the Public Service Regulations,
2001? If so, provide her/his name and position. X
2. Does the department have a dedicated unit or have you designated specific Employee Health and Wellness Component
staff members to promote health and well being of your employees? If so, consisting of 6 employees including Service
indicate the number of employees who are involved in this task and the annual Centers
budget that is available for this purpose. X
3. Has the department introduced an Employee Assistance or Health Promotion HIV/AIDS, STI and TB Management, Health and
Programme for your employees? If so, indicate the key elements/services of Productivity, Wellness Management and SHERQ
the programme. Management, participation in sporting activities X as part of the Work and Play Policy
4. Has the department established (a) committee(s) as contemplated in Part VI X No
E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please
provide the names of the members of the committee and the stakeholder(s)
that they represent.
5. Has the department reviewed the employment policies and practices of your I Xdepartment to ensure that these do not unfairly discriminate againstemployees on the basis of their HIV status? If so, list the employmentpolicies/practices so reviewed.6. Has the department introduced measures to protect HIV-positive employees I Xor those perceived to be HIV-positive from discrimination? If so, list the keyelements of these measures.
7. Does the department encourage its employees to undergo Voluntary I XCounselling and Testing? If so, list the results that you have achieved.
8. Has the department developed measures/indicators to monitor & evaluate I Xthe impact of your health promotion programme? If so, list thesemeasures/indicators.
Recruitment and selection policy, affirmative action policy, HIV/Aid and TB Management in the workplace.
Through the implementation of the HIV/AIDS and TB management policy, HIV Counselling and Testing is offered in the workplace for early detection. Those that are diagnosed, they are encouraged to consult their family doctors so that they could be initiated on treatment. As from the 1st of September 2016, DC4 count is no longer a prerequisite to access ARV treatment. Information is shared with employees during Integrated Policy workshops. The Department encourages employees on salary level one - five to enrol with GEMS under Sapphire option which offers 100% subsidy in order to promote access to quality health care and improve the quality of life for employees and their families. Yes,533 employees participated on HCT, 16 new infections were recorded
Heath risk Manager report, persal normal sick leave report, GEMS Health trend report, quarterly monitoring report which is submitted to OTP and DPSA
TABLE 11.1- Misconduct and Disciplinary Hearings Finalised
Outcomes of disciplinary hearings Number Percentage of Total Total
TOTAL 96 91 105
TABLE 11.2- Types of Misconduct Addressed and Disciplinary Hearings
Type of misconduct Number Percentage of Total Total
TOTAL 105 100 105
Cases pending as at 31/03/2016 09 8.6 09
TABLE 11.3 - Grievances Lodged Number of grievances addressed Number Percentage of Total Total
Not resolved / not finalized 04 6.8 59
Resolved/ finalized 55 93.2 59
TOTAL 59 100 59
TABLE 11.5 - D" Lodged Number of disputes addressed Number % of total
Upheld 0 0
Dismissed 0 0
Total 0 0
TABLE 11.6 - Strike Actions
Strike Actions NIL
Total number of person workinq days lost 0
Total cost(R'OOO) of working days lost 0
Amount (R'OOO) recovered as a result of no work no pay 0
TABLE 11.7 - P f s
Precautionary Suspensions 03
Number of people suspended 03
Number of people whose suspension exceeded 30 days 03
Average number of days suspended 152
Cost (R'OOO) of suspensions 2,248,718,7
TABLE 12.1 - Training Needs identified
Occupational Categories Gender Employment Learnerships Skills Other forms of Total Programmes & training other short courses
Legislators, senior officials and managers Female 0 0 0 0 0
Male 0 0 0 0 0
Professionals Female 0 0 0 0 0
Male 0 0 0 0 0
Technicians and associate professionals Female 0 0 0 0 0
Male 0 0 0 0 0
Clerks Female 0 0 0 0 0
Male 0 0 0 0 0
Service and sales workers Female 0 0 0 0 0
Male 0 0 0 0 0
Skilled aQriculture and fishery workers Female 0 0 0 0 0
Male 0 0 0 0 0
Craft and related trades workers Female 0 0 0 0 0
Male 0 0 0 0 0
Plant and machine operators and assemblers Female 0 0 0 0 0
Male 0 0 0 0 0
Elementary occupations Female 0 0 0 0 0
Male 0 0 0 0 0
Gender sub totals Female 0 0 0 0 0
Male 0 0 0 0 0
Total 0 0 0 0 0
TABLE 12.2 -Training Provided
Occupational Categories Gender Employment Learnerships Skills Other forms of Total Programmes & training other short courses
Leqislators, senior officials and manaqers Female 0 0 0 0 0
Male 0 0 0 0 0
Professionals Female 0 0 0 0 0
Male 0 0 0 0 0
Technicians and associate professionals Female 0 0 0 0 0
Male 0 0 0 0 0
Clerks Female 0 0 0 0 0
Male 0 0 0 0 0
Service and sales workers Female 0 0 0 0 0
Male 0 0 0 0 0
Skilled agriculture and fishery workers Female 0 0 0 0 0
Male 0 0 0 0 0
Craft and related trades workers Female 0 0 0 0 0
Male 0 0 0 0 0
Plant and machine operators and assemblers Female 0 0 0 0 0
Male 0 0 0 0 0
Elementary occupations Female 0 0 0 0 0
Male 0 0 0 0 0
Gender sub totals Female 0 0 0 0 0
Male 0 0 0 0 0
Total 0 0 0 0 0
TABLE 13.1 - Injury on Duty
Nature of injury on duty Number % of total
Required basic medical attention only 0 0
Temporary Total Disablement 0 0
Permanent Disablement 0 0
Fatal 0 0
Total 0
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118 Annual Report_2016/17
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124 Annual Report_2016/17
PART E: FINANCIAL INFORMATION
1. REPORT OF THE AUDITOR GENERAL
This is the auditor's report as issued by AGSA
2. ANNUAL FINCIAL STATEMENTS
Department's word version of the audited annual finacial statements.
Annual Report_2016/17
AUDITOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2016
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
126 Annual Report_2016/17
Report of the auditor-general to the KwaZulu-Natal Provincial Legislature on vote no. 3: Department of Agriculture and Rural Development Report on the financial statements
Introduction 1. I have audited the financial statements of the Department of Agriculture and Rural Develop
ment set out on pages 133 to 220, which comprise the appropriation statement, the statement
of financial position as at 3 1 March 2016, the statement of financial performance, statement of
changes in net assets, and cash flow statement for the year then ended, as well as the notes,
comprising a summary of significant accounting policies and other explanatory information.
Accounting officer's responsibility for the financial statements
2. The accounting officer is responsible for the preparation and fair presentation of these finan
cial statements in accordance with the Modified Cash Standard (MCS) prescribed by the National
Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act
No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2015 (Act No. 1 of 2015)
(DoRA), and for such internal control as the accounting officer determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor-general's responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with the International Standards on Auditing. Those
standards require that I comply with ethical requirements, and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the department's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
department's internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my audit opinion.
127 Annual Report_2016/17
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the
financial position of the Department of Agriculture and Rural Development as at 31
March 2016 and its financial performance and cash flows for the year then ended, in
accordance with the MCS and the requirements of the PFMA and DoRA.
Emphasis of matter
7. I draw attention to the matter below. My opinion is not modified in respect of this
matter.
Material underspending of the vote
8. As disclosed in the appropriation statement, the department materially underspent
the budget of the overall vote by R93,29 million. This can be attributed to a moratorium
on filling of vacant posts, late rains and slower than anticipated implementation of
drought relief interventions.
Additional matter
9. I draw attention to the matter below. My opinion is not modified in respect of this
matter.
Unaudited supplementary schedules
10. The supplementary information set out on pages 204 to 220 does not form part of
the financial statements and is presented as additional information. I have not audited
these schedules and, accordingly, I do not express an opinion thereon.
Report on other legal and regulatory requirements
11. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004)
(PAA) and the general notice issued in terms thereof, I have a responsibility to report
findings on the reported performance information against predetermined objectives for
selected programmes presented in the annual performance report, compliance with
legislation and internal control. The objective of my tests was to identify reportable
findings as described under each subheading but not to gather evidence to express
assurance on these matters. Accordingly, I do not express an opinion or conclusion on
these matters.
Predetermined objectives
12. I performed procedures to obtain evidence about the usefulness and reliability of the
reported performance information for programme 2 - agricultural development services
on pages 32 to 47 presented in the annual performance report of the department for the
year ended 31 March 2016.
128 Annual Report_2016/17
13. I evaluated the usefulness of the reported performance information to determine
whether it was presented in accordance with the National Treasury's annual reporting
principles and whether the reported performance was consistent with the planned
programmes. I further performed tests to determine whether indicators and targets
were well defined, verifiable, specific, measurable, time bound and relevant, as required
by the National Treasury's Framework for managing programme performance
information (FMPPI).
14. I assessed the reliability of the reported performance information to determine
whether it was valid, accurate and complete.
15. I did not raise any material findings on the usefulness and reliability of the reported
performance information for the selected programme.
Additional matters
16. Although I did not raise any material findings on the usefulness and reliability of the
reported performance information for the selected programme, I draw attention to the
following matters:
Achievement of planned targets 17. Refer to the annual performance report on pages 32 to 47 for information on the
achievement of the planned targets for the year.
Adjustment of material misstatements
18. I identified material misstatements in the annual performance report submitted for
auditing on the reported performance information for the agricultural development
services programme. As management subsequently corrected the misstatements, I did
not raise any material findings on the usefulness and reliability of the reported perfor
mance information.
Compliance with legislation
19. I performed procedures to obtain evidence that the department had complied with
applicable legislation regarding financial matters, financial management and other
related matters. My material findings on compliance with specific matters in key
legislation, as set out in the general notice issued in terms of the PAA, are as follows:
Expenditure management 20. Effective steps were not taken to prevent irregular expenditure of R34, 17 million, as
disclosed in note 31 to the annual financial statements, in contravention of section
38(1 )(c)(ii) of the PFMA and treasury regulation 9.1.1.
Internal control
21. I considered internal control relevant to my audit of the financial statements, annual
performance report and compliance with legislation. The matters reported below are
limited to the significant internal control deficiencies that resulted in the findings on the
compliance with legislation included in this report.
129 Annual Report_2016/17
Leadership 22. Vacancies in key positions and the use of acting positions affected leadership's ability
to implement effective action plans and internal control policies to create an effective
internal control environment in respect of compliance with legislation.
Financial and performance management 23. Monitoring and contract management processes did not prevent non-compliance
with laws and regulations.
Other reports 24. I draw attention to the following engagements that could potentially have an impact
on the department's financial, performance and compliance related matters. My opinion
is not modified in respect of these engagements that are either in progress or have been
completed.
Investigations 25. Three independent consulting firms performed an investigation at the request of the
department, which covered the period 2011 to 2012. The investigation was initiated
based on an allegation of possible misappropriation of the department's assets. The
investigation resulted in disciplinary actions being instituted against 12 employees, of
which seven have been finalised. At the time of this report, disciplinary proceedings for
five employees were in progress.
26. The provincial treasury's internal audit unit performed nine investigations on
possible supply chain management irregularities covering the period April 2009 to
March 2015.
Five of the investigations were completed and four were still in progress. In addition, one internal investigation was in progress relating to alleged fraudulent activity with regards
to delivery of fencing material.
Pietermaritzburg
29 July 2016
,·-.
_, -·- '' L ·',;)
AU DI TOR - GE N E RAL
SOUT H AF RICA
Auditing to build public confidence
130 Annual Report_2016/17
ANNUAL FINANCIAL STATEMENTS
FOR DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
C.if3
For the year ended 31 March 2016
131 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Table of Contents
Appropriation Statement
Notes to the Appropriation Statement
Statement of Financial Performance
Statement of Financial Position
Statement of Changes in Net Assets
Cash Flow Statement
Notes to the Annual Financial Statements (including Accounting policies)
Annexures
132 Annual Report_2015/16
3
34
37
38
39
40
41
74
ffi
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Adjusted Shifting of
Appropriation Funds
R'OOO R'OOO
Programme
1. Administration 383 090 -
2. Agriculture 1 907 395 -
3 . Rural Development 1 995 -
Subtotal 2 292 480 -
Statutory Appropriation - -
TOTAL 2 292 480 -
ADD
Departmental receipts
NRF Receipts
Aid assistance
Actual amounts per statement of financial performance (total revenue)
ADD
Aid assistance
Prior year unauthorised expenditure approved without funding
Actual amounts per statement of financial performance (total expenditure)
APPROPRIATION STATEMENT
for the year ended 31 March 2016
Appropriation per programme
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(10 966) 372 124 341 761
10 965 1 918 360 1 855 535
- 1 995 1 891
(1) 2 292 479 2199187
- - -
(1) 2 292 479 2199187
23 712
-
2 482
2 318 673
2 894
2 20 2 0 81
Variance
R'OOO
30 363
62 825
104
93 292
-
93 292
2014/15
Expenditure Final Actual
aso/oof Appropriation Expenditure
final
aooropriation
% R'OOO R'OOO
91.8% 334 211 301 841
96.7% 1 796 835 1 701 203
94.8% - -
95.9% 2131 046 2 0 0 3 044
- - -
95.9% 2131 046 2 0 0 3 044
32 267
-
-
2163 313
1 410
2 0 04 454
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Economic classification
Current payments 1 828 833
�
Compensation of employees 919 190
Salaries and wages 789 848
Social contributions 129 342
Goods and services 909 643
Administrative fees 1 959
Advertising 6 992
Minor assets 12 097
Audit costs: External 6 833
Bursaries: Employees 7 011
Catering: Departmental activities 2 450
Communication 30 623
Computer services 66 552
Consultants: Business and 1 390 advisory services
Infrastructure and planning 38 843 services
Laboratory services 250
Scientific and technological -
services
Legal services 2 071
Contractors 58 762
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
(34 6 02)
-
(2 995)
2 995
(34 602)
214
-
-
-
(3 099)
-
-
-
-
-
-
-
-
(7 541)
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(29 737 ) 17 644 94 173 8423
(4 191) 914 999 911 392
(2 679) 784 174 781 300
(1 512) 130 825 130 092
(25 773) 849 268 826 804
(103) 2 070 2 070
(1 148) 5 844 5 844
(6 291) 5 806 5 806
(1 068) 5 765 5 765
(2 461) 1 451 1 451
(1 114) 1 336 1 336
4 372 34 995 34 983
3 978 70 530 58 362
132 1 522 1 522
36 630 75 473 75 473
(197) 53 53
- - -
(434) 1 637 1 637
(6 549) 44 672 44 672
Variance
R'OOO
26 071
3 607
2 874
733
22464
-
-
-
-
-
-
12
12 168
-
-
-
-
-
-
2014/15
Expenditure Final Actual
as% of flnal Appropriation expenditure
appropriation
% R'OOO R'OOO
9 8.5% 1 642 648 1 56 5342
99.6% 852 364 851 046
99.6% 735 543 734 304
99.4% 116 821 116 742
97.4% 790 113 714 125
100.0% 116 116
100.0% 9 442 9 442
100.0% 4 363 4 307
100.0% 5 517 5 502
100.0% 1 889 1 889
100.0% 2 812 2 812
100.0% 42 294 39 442
82.7% 41 040 40 996
100.0% 1 789 1 789
100.0% 112 269 74 731
100.0% 54 54
- - -
100.0% 2 502 1 986
100.0% 47 843 47 843
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Agency and support/ outsourced 11 673 services
Entertainment -
Fleet services 34 041
� Housing
-
Inventory: Clothing material and 8 488 supplies
Inventory: Farming supplies 304 636
Inventory: Food and food supplies -
Inventory: Fuel, oil and gas 3 098
Inventory: Learner and teacher 2 031 support material
Inventory: Materials and supplies 22 015
Inventory: Medical supplies 1 306
Inventory: Medicine 9 952
Medsas Inventory Interface -
Inventory: Other supplies 4 803
Consumable supplies 64 381
Consumable: Stationery, printing 9 250 and office supplies
Operating leases 25 605
Property payments 65 193
Transport provided: Departmental 450 activity
Travel and subsistence 80 002
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
(9 462)
-
-
-
-
(14 500)
-
-
-
-
(214)
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
2 642 14 315 14 315
- - -
674 34 715 34 715
- - -
(2 698) 5 790 5 790
(47 735) 256 901 251 256
2 2 2
(365) 2 733 2 733
(238) 1 793 1 793
(8 289) 4 264 4 264
(711) 595 595
24 715 34 667 30 036
- - -
(920) 3 883 3 883
(2 935) 46 946 46 946
(1 218) 8 032 8 032
3 679 29 284 29 284
(940) 64 253 64 253
(169) 281 281
(8 006) 71 782 71 774
Variance
R'OOO
-
-
-
-
-
5 645
-
-
-
-
-
4 631
-
-
-
-
-
-
-
8
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
100.0% 26 262 25 975
- - -
100.0% 35 507 35 507
- - -
100.0% 4 863 4 863
97.8% 168 254 139 717
100.0% 19 -
100.0% 6 077 6 077
100.0% 1 619 1 619
100.0% 5 500 5 500
100.0% 523 523
86.6% 17 895 17 859
- - -
100.0% 3 599 3 599
100.0% 48 115 44 875
100.0% 8 607 8 119
100.0% 25 647 25 647
100.0% 61 046 61 046
100.0% 282 282
100.0% 80 322 78 054
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Training and development 11 200
Operating payments 12 848
Venues and facilities 2 758
Rental and hiring 80
Interest and rent on land -
Interest -
Rent on land -
Transfers and subsidies 229 125
Provinces and municipalities 1 273
Provinces 1 260
Provincial Revenue Funds -
Provincial agencies and 1 260 funds
Municipalities 13
Municipal bank accounts -
Municipal agencies and 13 funds
Departmental agencies and accounts 102 309
Social security funds -
Departmental agencies and 102 309 accounts
Higher education institutions -
Foreign governments and international -
organisations
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
34 602
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(4 039) 7 161 7 161
(3 064) 9 784 9 784
(1 885) 873 873
(20) 60 60
227 227 227
157 157 157
70 70 70
4 069 267 796 246 968
40 1 313 1 313
40 1 300 1 300
- - -
40 1 300 1 300
- 13 13
- - -
- 13 13
(40) 102 269 101 306
- - -
(40) 102 269 101 306
- - -
- - -
Variance
R'OOO
-
-
-
-
-
-
-
20 828
-
-
-
-
-
-
-
963
-
963
-
-
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
100.0% 8 040 8 040
100.0% 8 874 8 874
100.0% 6 778 6 686
100.0% 354 354
100.0% 171 171
100.0% 108 108
100.0% 63 63
92.2% 224 158 219 116
100.0% 1 237 1 237
100.0% 1 203 1 203
- - -
100.0% 1 203 1 203
100.0% 34 34
- - -
100.0% 34 34
99.1% 108 351 108 351
- 1 1
99.1% 108 350 108 350
- - -
- - -
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Public corporations and private 100 453 enterprises
Public corporations 54 563
Subsidies on products and -
production
� Other transfers to public 54 563 corporations
Private enterprises 45 890
Subsidies on products and -
production
Other transfers to private 45 890 enterprises
Non-profit institutions 13 770
Households 11 320
Social benefits 11 309
Other transfers to households 11
Payments for capital assets 234 522
Buildings and other fixed structures 159 375
Buildings 15 657
Other fixed structures 143 718
Machinery and equipment 75 105
Transport equipment 25 985
Other machinery and equipment 49 120
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
31 503
9 636
-
9 636
21 867
-
21 867
-
3 099
-
3 099
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
- 131 956 112 091
- 64 199 64 199
- - -
- 64 199 64 199
- 67 757 47 892
- - -
- 67 757 47 892
- 13 770 13 770
4 069 18 488 18 488
4 069 15 378 15 378
- 3 110 3 110
25 0 48 25 9 570 213177
41 046 200 421 172 688
(7 109) 8 548 8 548
48 155 191 873 164 140
(16 306) 58 799 40 139
- 25 985 17 896
(16 306) 32 814 22 243
Variance
R'OOO
19 865
-
-
-
19 865
-
19 865
-
-
-
-
46393
27 733
-
27 733
18 660
8 089
10 571
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
84.9% 96 254 91 962
100.0% 74 853 73 165
- - -
100.0% 74 853 73 165
70.7% 21 401 18 797
- - -
70.7% 21 401 18 797
100.0% 6 050 5 300
100.0% 12 266 12 266
100.0% 12 132 12 132
100.0% 134 134
82.1% 260 832 215 178
86.2% 217 324 182 814
100.0% 19 393 3 654
85.5% 197 931 179 160
68.3% 43 134 32 180
68.9% 21 383 20 481
67.8% 21 751 11 699
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Heritage assets -
Specialised military assets -
Biological assets 42
Land and subsoil assets -
g Intangible assets -
Payments for financial assets -
Total 2 292 480
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
- - -
- - -
308 350 350
- - -
- - -
619 619 619
Variance
R'OOO
-
-
-
-
-
-
- (1) 2 292 479 2 199 187 93 292
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
- - -
- - -
100.0% 258 145
- - -
- 116 39
100.0% 3 408 3 408
95.9% 2 131 046 2 003 044
Programme 1: ADMINISTRATION
Adjusted
Appropriation
R'OOO
Sub programme
1.1 Office of the MEC 16 941
1.2 Senior Management 30 402
1.3 Corporate Support Services 221 753
� 1.4 Financial Management 82 675
1.5 Communication Services 31 319
Total for sub programmes 383 090
Economic classification
Current payments 325 651
Compensation of employees 141 572
Salaries and wages 121 827
Social contributions 19 745
Goods and services 184 079
Administrative fees 854
Advertising 6 786
Minor assets 2 048
Audit costs: External 6 833
Bursaries: Employees 6 451
Catering: Departmental activities 526
Communication 14 025
Computer services 63 269
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
(3 099)
-
(7)
7
(3 099)
66
-
-
-
(3 099)
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(2 797) 14 144 14 129
836 31 238 31 238
3 742 225 495 201 514
(7 221) 75 454 69 089
(5 526) 25 793 25 791
(10 966) 372 124 341 761
(4 637) 317 915 304 101
(332) 141 240 139 594
612 122 432 121 335
(944) 18 808 18 259
(4 355) 176 625 164 457
(18) 902 902
(994) 5 792 5 792
155 2 203 2 203
(1 068) 5 765 5 765
(2 092) 1 260 1 260
14 540 540
5 886 19 911 19 911
(3 796) 59 473 47 305
Variance
R'OOO
15
-
23 981
6 365
2
30 363
13 814
1 646
1 097
549
12 168
-
-
-
-
-
-
-
12 168
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
99.9% 20 756 17 968
100.0% 28 386 27 492
89.4% 168 429 167 271
91.6% 84 515 64 957
100.0% 32 125 24 153
91.8% 334 211 301 841
95.7% 282 058 274 813
98.8% 124 814 124 146
99.1% 109 107 108 518
97.1% 15 707 15 628
93.1% 157 170 150 593
100.0% 1 1
100.0% 9 273 9 273
100.0% 1 434 1 378
100.0% 5 517 5 502
100.0% 1 300 1 300
100.0% 383 383
100.0% 20 795 17 943
79.5% 39 995 39 951
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Consultants: Business and 1 093 advisory services
Infrastructure and planning 602 services
�
Laboratory services -
Scientific and technological -
services
Legal services 2 071
Contractors 9 019
Agency and support/ outsourced -
services
Entertainment -
Fleet services 5 363
Housing -
Inventory: Clothing material and 558 supplies
Inventory: Farming supplies -
Inventory: Food and food supplies -
Inventory: Fuel, oil and gas 17
Inventory: Learner and teacher 80 support material
Inventory: Materials and supplies 5 323
Inventory: Medical supplies -
Inventory: Medicine -
Medsas Inventory Interface -
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
379 1 472 1 472
1 049 1 651 1 651
- - -
- - -
(434) 1 637 1 637
2 710 11 729 11 729
242 242 242
- - -
(53) 5 310 5 310
- - -
1 259 1 817 1 817
- - -
- - -
(13) 4 4
(80) - -
(4 732) 591 591
- - -
- - -
- - -
Variance
R'OOO
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
- 100.0% 1 789 1 789
- 100.0% 744 744
- - - -
- - - -
- 100.0% 2 502 1 986
- 100.0% 10 460 10 460
- 100.0% 633 442
- - - -
- 100.0% 6 411 6 411
- - - -
- 100.0% 413 413
- - - -
- - 19 -
- 100.0% 2 2
- - 172 172
- 100.0% 502 502
- - 78 78
- - - -
- - - -
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Inventory: Other supplies -
Consumable supplies 1 925
Consumable: Stationery, printing 3 497 and office supplies
:E Operating leases 1 590
Property payments 26 921
Transport provided: Departmental -activity
Travel and subsistence 16 303
Training and development 3 882
Operating payments 3 472
Venues and facilities 1 571
Rental and hiring -
Interest and rent on land -
Interest -
Rent on land -
Transfers and subsidies 4 079
Provinces and municipalities 980
Provinces 980
Provincial Revenue Funds -
Provincial agencies and 980 funds
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Shifting of Virement Final Actual Variance
Funds Appropriation Expenditure
R'OOO R'OOO R'OOO R'OOO R'OOO
- - - - -
- (759) 1 166 1 166 -
- 652 4 149 4 149 -
- 228 1 818 1 818 -
- 1 822 28 743 28 743 -
- - - - -
(66) (1 950) 14 287 14 287 -
- 11 3 893 3 893 -
- (2 004) 1 468 1 468 -
- (769) 802 802 -
- - - - -
- 50 50 50 -
- 50 50 50 -
- - - - -
3 099 459 7 637 6 682 955
- 167 1 147 1 147 -
- 167 1 147 1 147 -
- - - - -
- 167 1 147 1 147 -
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
- - -
100.0% 1 259 1 210
100.0% 5 132 4 644
100.0% 1 676 1 676
100.0% 24 858 24 858
- 15 15
100.0% 16 749 14 481
100.0% 3 509 3 509
100.0% 1 187 1 187
100.0% 356 277
- 6 6
100.0% 74 74
100.0% 74 74
- - -
87.5% 4 219 4 219
100.0% 619 619
100.0% 619 619
- - -
100.0% 619 619
Adjusted
Appropriation
R'OOO
Municipalities -
Municipal bank accounts -
Municipal agencies and -
funds
i5 Departmental agencies and accounts 2 800
Social security funds -
Departmental agencies 2 800 Higher education institutions
-
Foreign governments and international -
organisations
Public corporations and private 5 enterprises
Public corporations -
Subsidies on products and -
production
Other transfers to public -
corporations
Private enterprises 5 Subsidies on products and
-
production
Other transfers to private 5 enterprises
Non-profit institutions -
Households 294 Social benefits 283 Other transfers to households 11
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
APPROPRIATION STATEMENT
for the year ended 31 March 2016
Appropriation per economic classification
2015/16
Shifting of Virement Final Actual Variance
Funds Appropriation Expenditure
R'OOO R'OOO R'OOO R'OOO R'OOO
- - - - -
- - - - -
- - - - -
- (40) 2 760 1 805 955
- - - - -
- (40) 2 760 1 805 955
- - - - -
- - - - -
- - 5 5 -
- - - - -
- - - - -
- - - - -
- - 5 5 -
- - - - -
- - 5 5 -
- - - - -
3 099 332 3 725 3 725 -
- 332 615 615 -
3 099 - 3 110 3 110 -
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
- - -
- - -
- - -
65.4% 1 938 1 938
- - -
65.4% 1 938 1 938
- - -
- - -
100.0% - -
- - -
- - -
- - -
100.0% - -
- - -
100.0% - -
- - -
100.0% 1 662 1 662
100.0% 1 588 1 588
100.0% 74 74
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Payments for capital assets 53 360
Buildings and other fixed structures 15 657
Buildings 15 657
i5 Other fixed structures
-
Machinery and equipment 37 703
Transport equipment 18 981
Other machinery and equipment 18 722
Heritage assets -
Specialised military assets -
Biological assets -
Land and subsoil assets -
Intangible assets -
Payments for financial assets -
Total 383 090
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(7 407) 45 953 30 359
(7 109 ) 8548 8 548
(7 109 ) 8548 8 548
- - -
(298) 37 405 21 811
- 18 981 13 958
(298) 18424 7 853
- - -
- - -
- - -
- - -
- - -
619 619 619
(10 966) 372 124 341 761
Variance
R'OOO
15 594
-
-
-
15 594
5 023
10 571
-
-
-
-
-
-
30 363
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
66.1% 44 526 19 401
100.0% 19 393 3 654
100.0% 19 393 3 654
- - -
58.3% 25 056 15 747
73.5% 13 935 13 033
42.6% 11 121 2 714
- - -
- - -
- - -
- - -
- 77 -
100.0% 3 408 3 408
91.8% 334 211 301 841
1.1 Office of the MEC
Economic classification
Current payments
Compensation of employees
Goods and services
Interest and rent on land
:E Transfers and subsidies
Provinces and municipalities
Departmental agencies and accounts
Higher education institutions
Foreign governments and international organisations
Public corporations and private enterprises
Non-profit institutions
Households
Payments for capital assets
Buildings and other fixed structures
Machinery and equipment
Heritage assets
Specialised military assets
Biological assets
Land and subsoil assets
Intangible assets
Payments for financial assets
Total
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Adjusted Shifting of
Appropriation Funds
R'OOO R'OOO
16 722 -
8 634 -
8 088 -
- -
115 -
- -
- -
- -
- -
- -
- -
115 -
104 -
- -
104 -
- -
- -
- -
- -
- -
- -
16 941 -
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(2 761) 13 961 13 946
(6) 8 628 8 613
(2 755) 5 333 5 333
- - -
6 121 121
- - -
- - -
- - -
- - -
- - -
- - -
6 121 121
(42) 62 62
- - -
(42) 62 62
- - -
- - -
- - -
- - -
- - -
- - -
(2 797) 14 144 14 129
Variance
R'OOO
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
15 99.9% 20 479 17 691
15 99.8% 10 334 10 196
- 100.0% 10 145 7 495
- - - -
- 100.0% 74 74
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 100.0% 74 74
- 100.0% 203 203
- - - -
- 100.0% 203 203
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
15 99.9% 20 756 17 968
1.2 Senior Management
Economic classification
Current payments
Compensation of employees
Goods and services
Interest and rent on land
C; Transfers and subsidies
Provinces and municipalities
Departmental agencies and accounts
Higher education institutions
Foreign governments and international organisations
Public corporations and private enterprises
Non-profit institutions
Households
Payments for capital assets
Buildings and other fixed structures
Machinery and equipment
Heritage assets
Specialised military assets
Biological assets
Land and subsoil assets
Intangible assets
Payments for financial assets
Total
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Adjusted Shifting of
Appropriation Funds
R'OOO R'OOO
29 638 -
17 251 -
12 387 -
- -
38 -
- -
- -
- -
- -
5 -
- -
33 -
726 -
156 -
570 -
- -
- -
- -
- -
- -
- -
30 402 -
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
1 177 30 815 30 815
861 18 112 18 112
316 12 703 12 703
- - -
59 97 97
- - -
- - -
- - -
- - -
- 5 5
- - -
59 92 92
(400) 326 326
(156) - -
(244) 326 326
- - -
- - -
- - -
- - -
- - -
- - -
836 31 238 31 238
Variance
R'OOO
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
- 100.0% 27 202 26 308
- 100.0% 15 799 15 741
- 100.0% 11 403 10 567
- - - -
- 100.0% 98 98
- - - -
- - - -
- - - -
- - - -
- 100.0% - -
- - - -
- 100.0% 98 98
- 100.0% 153 153
- - - -
- 100.0% 153 153
- - - -
- - - -
- - - -
- - - -
- - - -
- - 933 933
- 100.0% 28 386 27 492
1.3 Coroorate Sunnort Services
Adjusted
Appropriation
Economic classification R'OOO
Current payments 201 522
Compensation of employees 65 084
Goods and services 136 438
Interest and rent on land -
� Transfers and subsidies 2 836
Provinces and municipalities -
Departmental agencies and accounts 2 800
Higher education institutions -
Foreign governments and -
international organisations
Public corporations and private -
enterprises
Non-profit institutions -
Households 36
Payments for capital assets 17 395
Buildings and other fixed structures 271
Machinery and equipment 17 124
Heritage assets -
Biological assets -
Intangible assets -
Payments for financial assets -
Total 221 753
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
(3 099)
-
(3 099)
-
3 099
-
-
-
-
-
-
3 099
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
2 750 201 173 188 718
(1 062) 64 022 63 735
3 765 137 104 124 936
47 47 47
102 6 037 5 082
- - -
(40) 2 760 1 805
- - -
- - -
- - -
- - -
142 3 277 3 277
271 17 666 7 095
67 338 338
204 17 328 6 757
- - -
- - -
- - -
619 619 619
3 742 225 495 201 514
Variance
R'OOO
12 455
287
12 168
-
955
-
955
-
-
-
-
-
10 571
-
10 571
-
-
-
-
23 981
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
93.8% 162 952 162 252
99.6% 54 176 53 756
91.1% 108 709 108 429
100.0% 67 67
84.2% 2 838 2 838
- - -
65.4% 1 938 1 938
- - -
- - -
- - -
- - -
100.0% 900 900
40.2% 2 639 2 181
100.0% 424 424
39.0% 2 211 1 757
- - -
- - -
- 4 -
100.0% - -
89.4% 168 429 167 271
1.4 Financial Manaaement
Adjusted
Appropriation
Economic classification R'OOO
Current payments 47 040
Compensation of employees 38 965
Goods and services 8 075
Interest and rent on land -
� Transfers and subsidies 1 050
Provinces and municipalities 980
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and -
international organisations
Public corporations and private .
enterprises
Non-profit institutions -
Households 70
Payments for capital assets 34 585
Buildings and other fixed structures 15 230
Machinery and equipment 19 355
Heritage assets -
Biological assets -
Intangible assets
Payments for financial assets -
Total 82 675
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
.
-
-
-
-
.
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(693) 46 347 45 005
(46) 38 919 37 577
(650) 7 425 7 425
3 3 3
213 1 263 1 263
167 1 147 1 147
- - -
- - -
- - -
. . .
- - -
46 116 116
(6 741) 27 844 22 821
(7 020) 8 210 8 210
279 19 634 14 611
- - -
- - -
-
- - -
(7 221) 75 454 69 089
Variance
R'OOO
1 342
1 342
-
-
-
-
-
-
-
.
-
-
5 023
-
5 023
-
-
-
-
6 365
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
97.1% 44 831 44 671
96.6% 34 081 34 029
100.0% 10 743 10 635
100.0% 7 7
100.0% 1 203 1 203
100.0% 619 619
- - -
- - -
- - -
- . .
- - -
100.0% 584 584
82.0% 36 006 16 608
100.0% 18 969 3 230
74.4% 16 964 13 378
- - -
- - -
- 73 -
- 2 475 2 475
91.6% 84 515 64 957
1.5 Communication Services
Adjusted
Appropriation
Economic classification R'OOO
Current payments 30 729
Compensation of employees 11 638
Goods and services 19 091
Interest and rent on land -
� Transfers and subsidies 40
Provinces and municipalities -
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and -
international organisations
Public corporations and private .
enterprises
Non-profit institutions -
Households 40
Payments for capital assets 550
Buildings and other fixed structures -
Machinery and equipment 550
Heritage assets -
Biological assets -
Intangible assets .
Payments for financial assets -
Total 31 319
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
.
-
-
-
-
.
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(5 110) 25 619 25 617
(79) 11 559 11 557
(5 031) 14 060 14 060
- - -
79 119 119
- - -
- - -
- - -
- - -
. . .
- - -
79 119 119
(495) 55 55
- - -
(495) 55 55
- - -
- - -
- - -
- - -
(5 526) 25 793 25 791
Variance
R'OOO
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
2 100.0% 26 594 23 891
2 100.0% 10 424 10 424
- 100.0% 16 170 13 467
- - - -
- 100.0% 6 6
- - - -
- - - -
- - - -
- - - -
. - . .
- - - -
- 100.0% 6 6
- 100.0% 5 525 256
- - - -
- 100.0% 5 525 256
- - - -
- - - -
- - - -
- - - -
2 100.0% 32 125 24 153
Programme 2: Aariculture
Adjusted
Appropriation
R'OOO
Sub programme
2.1 Sustainable Resource Management 86 461
2.2 Farmer Support and Development 1 314 231
� 2.3 Veterinary Services 185 389
2.4 Research and Technology 204 807
Development
2.5 Agricultural Economic Services 6 397
2.6 Structured Agricultural Education and 110 110
Traininq
Total for sub programmes 1 907 395
Economic classification
Current payments 1 501 187
Compensation of employees 775 870
Salaries and wages 666 568
Social contributions 109 302
Goods and services 725 317
Administrative fees 1 105
Advertising 206
Minor assets 10 049
Audit costs: External -
Bursaries: Employees 560
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
(31 503)
-
(3 094)
3 094
(31 503)
146
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(10 969) 75 492 75 492
67 768 1 381 999 1 326 626
(15 939) 169 450 163 086
(22 317) 182 490 181 914
(327) 6 070 5 699
(7 251) 102 859 102 718
10 965 1 918 360 1 855 535
(25 100) 1444 584 1432431
(3 737) 772 133 770 256
(3 169) 660 305 658 554
(568) 111 828 111 702
(21 540) 672 274 661 998
(92) 1 159 1 159
(154) 52 52
(6 446) 3 603 3 603
- - -
(369) 191 191
Variance
R'OOO
-
55 373
6 364
576
371
141
62 825
12 153
1 877
1 751
126
10 276
-
-
-
-
-
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
100.0% 79 655 77 460
96.0% 1 253 807 1 167 294
96.2% 183 047 182 517
99.7% 171 693 169 990
93.9% 6 561 6 262
99.9% 102 072 97 680
96.7% 1 796 835 1 701 203
99.2% 1 360 590 1 290 529
99.8% 727 550 726 900
99.7% 626 436 625 786
99.9% 101 114 101 114
98.5% 632 943 563 532
100.0% 115 115
100.0% 169 169
100.0% 2 929 2 929
- - -
100.0% 589 589
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Catering: Departmental activities 1 924
Communication 16 571
Computer services 3 283
Consultants: Business and 297
gj advisory services
Infrastructure and planning 38 241 services
Laboratory services 250
Scientific and technological -services
Legal services -
Contractors 49 743
Agency and support/ outsourced 11 673 services
Entertainment -
Fleet services 28 678
Housing -
Inventory: Clothing material and 7 930 supplies
Inventory: Farming supplies 304 636
Inventory: Food and food supplies -
Inventory: Fuel, oil and gas 3 081
Inventory: Learner and teacher 1 951 support material
Inventory: Materials and supplies 16 692
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
(7 541)
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(1 128) 796 796
(1 499) 15 072 15 072
7 774 11 057 11 057
(247) 50 50
35 581 73 822 73 822
(197) 53 53
- - -
- - -
(9 259) 32 943 32 943
2 400 14 073 14 073
- - -
727 29 405 29 405
- - -
(3 957) 3 973 3 973
Variance
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (47 735) 256 901 251 256 5 645
- 2 2 2 -
- (352) 2 729 2 729 -
- (158) 1 793 1 793 -
(9 462) (3 557) 3 673 3 673 -
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
100.0% 2 429 2 429
100.0% 21 499 21 499
100.0% 1 045 1 045
100.0% - -
100.0% 111 525 73 987
100.0% 54 54
- - -
- - -
100.0% 37 383 37 383
100.0% 25 629 25 533
- - -
100.0% 29 096 29 096
- - -
100.0% 4 450 4 450
97.8% 168 254 139 717
100.0% - -
100.0% 6 075 6 075
100.0% 1 447 1 447
100.0% 4 998 4 998
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Inventory: Medical supplies 1 306
Inventory: Medicine 9 952
Medsas Inventory Interface -
Inventory: Other supplies 4 803
� Consumable supplies 62 456
Consumable: Stationery, printing 5 753 and office supplies
Operating leases 24 015
Property payments 38 272
Transport provided: Departmental 450 activity
Travel and subsistence 63 479
Training and development 7 318
Operating payments 9 376
Venues and facilities 1 187
Rental and hiring 80
Interest and rent on land -
Interest -
Rent on land -
Transfers and subsidies 225 046
Provinces and municipalities 293
Provinces 280
Provincial agencies & funds 280
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
(14 500)
-
-
-
-
(146)
-
-
-
-
-
-
-
31 503
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(711) 595 595
24 715 34 667 30 036
- - -
(920) 3 883 3 883
(2 176) 45 780 45 780
(1 870) 3 883 3 883
3 451 27 466 27 466
(2 762) 35 510 35 510
(169) 281 281
(6 186) 57 147 57 147
(4 050) 3 268 3 268
(1 060) 8 316 8 316
(1 116) 71 71
(20) 60 60
177 177 177
107 107 107
70 70 70
3 610 260 159 240 286
(127) 166 166
(127) 153 153
(127) 153 153
Variance
R'OOO
-
4 631
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19 873
-
-
-
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
100.0% 445 445
86.6% 17 895 17 859
- - -
100.0% 3 599 3 599
100.0% 46 856 43 665
100.0% 3 475 3 475
100.0% 23 971 23 971
100.0% 36 188 36 188
100.0% 267 267
100.0% 63 573 63 573
100.0% 4 531 4 531
100.0% 7 687 7 687
100.0% 6 422 6 409
100.0% 348 348
100.0% 97 97
100.0% 34 34
100.0% 63 63
92.4% 219 939 214 897
100.0% 618 618
100.0% 584 584
100.0% 584 584
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Municipalities 13
Municipal bank accounts -
Municipal agencies and 13 funds
Departmental agencies and accounts 99 509
� Social security funds
-
Departmental agencies and 99 509 accounts
Higher education institutions -
Foreign governments and international -
organisations
Public corporations and private 100 448 enterprises
Public corporations 54 563
Subsidies on products and -
production
Other transfers to public 54 563 corporations
Private enterprises 45 885
Subsidies on products and -
production
Other transfers to private 45 885 enterprises
Non-profit institutions 13 770
Households 11 026
Social benefits 11 026
Other transfers to households -
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
31 503
9 636
-
9 636
21 867
-
21 867
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
- 13 13
- - -
- 13 13
- 99 509 99 501
- - -
- 99 509 99 501
- - -
- - -
- 131 951 112 086
- 64199 64199
- - -
- 64199 64199
- 67 752 47 887
- - -
- 67 752 47 887
- 13 770 13 770
3 737 14 763 14 763
3 737 14 763 14 763
- - -
Variance
R'OOO
-
-
-
8
-
8
-
-
19 865
-
-
-
19 865
-
19 865
-
-
-
-
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
100.0% 34 34
- - -
100.0% 34 34
100.0% 106 413 106 413
- 1 1
100.0% 106 412 106 412
- - -
- - -
84.9% 96 254 91 962
100.0% 74 853 73 165
- - -
100.0% 74 853 73 165
70.7% 21 401 18 797
- - -
70.7% 21 401 18 797
100.0% 6 050 5 300
100.0% 10 604 10 604
100.0% 10 544 10 544
- 60 60
Aoorooriation oer economic classification
Adjusted
Appropriation
R'OOO
Payments for capital assets 181 162
Buildings and other fixed structures 143 718
Buildings -
Other fixed structures 143 718
� Machinery and equipment 37 402
Transport equipment 7 004
Other machinery and equipment 30 398
Heritage assets -
Specialised military assets -
Biological assets 42
Land and subsoil assets -
Intangible assets -
Payments for financial assets -
Total 1907 395
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
32455 213 617 182 818
48 155 191 873 164 140
- - -
48 155 191 873 164 140
(16 008) 21 394 18 328
- 7 004 3 938
(16 008) 14 390 14 390
- - -
- - -
308 350 350
- - -
- - -
- - -
10 965 1918 360 1 855 535
Variance
R'OOO
30 799
27 733
-
27 733
3 066
3 066
-
-
-
-
-
-
-
62 825
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
85.6% 216 306 195 7 7 7
85.5% 197 931 179 160
- - -
85.5% 197 931 179 160
85.7% 18 078 16 433
56.2% 7 448 7 448
100.0% 10 630 8 985
- - -
- - -
100.0% 258 145
- - -
- 39 39
- - -
96.7 % 1 796 835 1 7 01 203
2.1 Sustainable Resource Manaaement
Adjusted
Appropriation
Economic classification R'OOO
Current payments 82 771
Compensation of employees 29 085
Goods and services 53 686
Interest and rent on land -
f Transfers and subsidies 2 260
Provinces and municipalities -
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and -
international organisations
Public corporations and private 1 500 enterprises
Non-profit institutions -
Households 760
Payments for capital assets 1 430
Buildings and other fixed structures -
Machinery and equipment 1 430
Heritage assets -
Biological assets -
Intangible assets -
Payments for financial assets -
Total 86 461
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(9 934) 72 837 72 837
305 29 390 29 390
(10 239) 43 447 43 447
- - -
(329) 1 931 1 931
- - -
- - -
- - -
- - -
- 1 500 1 500
- - -
(329) 431 431
(706) 724 724
- - -
(706) 724 724
- - -
- - -
- - -
- - -
(10 969) 75 492 75 492
Variance
R'OOO
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
- 100.0% 72 293 70 594
- 100.0% 24 503 24 503
- 100.0% 47 790 46 091
- - - -
- 100.0% 2 189 1 702
- - - -
- - - -
- - - -
- - - -
- 100.0% 1 756 1 269
- - - -
- 100.0% 433 433
- 100.0% 5173 5164
- - 3 977 3 968
- 100.0% 1 196 1 196
- - - -
- - - -
- - - -
- - - -
- 100.0% 79 655 77 460
2.2 Farmer Sunnort and Develooment
Adjusted
Appropriation
Economic classification R'OOO
Current payments 992 832
Compensation of employees 448 878
Goods and services 543 954
Interest and rent on land -
81 Transfers and subsidies 205 593
Provinces and municipalities 280
Departmental agencies and accounts 99 500
Higher education institutions -
Foreign governments and -
international organisations
Public corporations and private 98 948 enterprises
Non-profit institutions -
Households 6 865
Payments for capital assets 115 806
Buildings and other fixed structures 97 383
Machinery and equipment 18 423
Heritage assets -
Biological assets
Intangible assets -
Payments for financial assets -
Total 1 314 231
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
(31 503)
-
(31 503)
-
31 503
-
-
-
-
31 503
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(2 278) 959 051 948 207
(2 405) 446 473 445 905
27 512 478 502 202
100 100 100
1 973 239 069 219 204
(127) 153 153
- 99 500 99 500
- - -
- - -
- 130 451 110 586
- - -
2 100 8 965 8 965
68 073 183 879 159 215
68 346 165 729 144 131
(273) 18 150 15 084
- - -
-
- - -
- - -
67 768 1 381 999 1 326 626
Variance
R'OOO
10 844
568
10 276
-
19 865
-
-
-
-
19 865
-
-
24664
21 598
3 066
-
-
-
-
55 373
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
98.9% 859 574 795 628
99.9% 417 115 417 096
98.0% 442 431 378 504
100.0% 28 28
91.7% 209 703 205 898
100.0% 584 584
100.0% 106 412 106 412
- - -
- - -
84.8% 94 498 90 693
- - -
100.0% 8 209 8 209
86.6% 184 530 165 768
87.0% 176 860 158 098
83.1% 7 525 7 525
- - -
- 145 145
- - -
- - -
96.0% 1 253 807 1 167 294
<ri c:n
2.3 Veterinarv Services
Economic classification
Current payments
Compensation of employees
Goods and services
Interest and rent on land
Transfers and subsidies
Provinces and municipalities
Departmental agencies and accounts
Higher education institutions
Foreign governments and international organisations
Public corporations and private enterprises
Non-profit institutions
Households
Payments for capital assets
Buildings and other fixed structures
Machinery and equipment
Heritage assets
Biological assets
Intangible assets
Payments for financial assets
Total
Adjusted
Appropriation
R'OOO
152 234
112 347
39 887
-
1 192
-
9
-
-
-
1 183
31 963
28 954
3 009
-
-
-
-
185 389
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
591 152 825 152 604
(909) 111 438 111 217
1 500 41 387 41 387
- - -
909 2 101 2 093
- - -
- 9 1
- - -
- - -
- - -
-
909 2 092 2 092
(17 439) 14 524 8 389
(15 366) 13 588 7 453
(2 073) 936 936
- - -
- - -
- - -
- - -
(15 939) 169 450 163 086
Variance
R'OOO
221
221
-
-
8
-
8
-
-
-
-
-
6 135
6 135
-
-
-
-
-
6 364
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
99.9% 170 897 170 367
99.8% 101 537 101 537
100.0% 69 360 68 830
- - -
99.6% 5 865 5 865
- - -
11.1% 1 1
- - -
- - -
- - -
- 5 300 5 300
100.0% 564 564
57.8% 6 285 6 285
54.8% 5 277 5 277
100.0% 1 008 1 008
- - -
- - -
- - -
- - -
96.2% 183 047 182 517
2.4 Research and Technoloav Develooment
Adjusted
Appropriation
Economic classification R'OOO
Current payments 182 391
Compensation of employees 134 604
Goods and services 47 787
Interest and rent on land -
gj Transfers and subsidies 1 759
Provinces and municipalities -
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and international -organisations
Public corporations and private -
enterprises
Non-profit institutions -
Households 1 759
Payments for capital assets 20 657
Buildings and other fixed structures 6 400
Machinery and equipment 14 215
Heritage assets -
Biological assets 42
Intangible assets -
Payments for financial assets -
Total 204 807
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(9 849) 172 542 171 966
(639) 133 965 133 389
(9 281) 38 506 38 506
71 71 71
639 2 398 2 398
- - -
- - -
- - -
- - -
- - -
- - -
639 2 398 2 398
(13 107) 7 550 7 550
(773) 5 627 5 627
(12 642) 1 573 1 573
- - -
308 350 350
- - -
- - -
(22 317) 182 490 181 914
Variance
R'OOO
576
576
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
576
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
99.7% 163 619 163 619
99.6% 124 665 124 665
100.0% 38 890 38 890
100.0% 64 64
100.0% 1 010 1 010
- - -
- - -
- - -
- - -
- - -
- - -
100.0% 1 010 1 010
100.0% 7 064 5 361
100.0% 2 144 2 144
100.0% 4 807 3 217
- - -
100.0% 113 -
- - -
- - -
99.7% 171 693 169 990
2.5 Aaricultural Economic Services
Adjusted
Appropriation
Economic classification R'OOO
Current payments 6 357
Compensation of employees 5 613
Goods and services 744
Interest and rent on land -
gi Transfers and subsidies
-
Provinces and municipalities -
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and international -organisations
Public corporations and private -
enterprises
Non-profit institutions -
Households -
Payments for capital assets 40
Buildings and other fixed structures -
Machinery and equipment 40
Heritage assets -
Biological assets -
Intangible assets -
Payments for financial assets -
Total 6 397
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Shifting of Virement Final Actual Variance
Funds Appropriation Expenditure
R'OOO R'OOO R'OOO R'OOO R'OOO
- (326) 6 031 5 660 371
- (39) 5 574 5 203 371
- (287) 457 457 -
- - - - -
- 39 39 39 -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- 39 39 39 -
- (40) - - -
- - - - -
- (40) - - -
- - - - -
- - - - -
- - - - -
- - - - -
- (327) 6 070 5 699 371
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
93.8% 6 506 6 262
93.3% 5 558 5 491
100.0% 948 771
- - -
100.0% - -
- - -
- - -
- - -
- - -
- - -
- - -
100.0% - -
- 55 -
- - -
- 55 -
- - -
- - -
- - -
- - -
93.9% 6 561 6 262
2.6 Structured Aaricultural Education and Trainina
Adjusted
Appropriation
Economic classification R'OOO
Current payments 84 602
Compensation of employees 45 343
Goods and services 39 259
Interest and rent on land -
� Transfers and subsidies 14 242
Provinces and municipalities 13
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and international -
organisations
Public corporations and private -
enterprises
Non-profit institutions 13 770
Households 459
Payments for capital assets 11 266
Buildings and other fixed structures 10 981
Machinery and equipment 285
Heritage assets -
Biological assets -
Intangible assets
Payments for financial assets -
Total 110 110
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Shifting of Virement Final Actual Variance
Funds Appropriation Expenditure
R'OOO R'OOO R'OOO R'OOO R'OOO
- (3 304) 81 298 81 157 141
- (50) 45 293 45 152 141
- (3 260) 35 999 35 999 -
- 6 6 6 -
- 379 14 621 14 621 -
- - 13 13 -
- - - - -
- - - - -
- - - - -
- - - - -
- - 13 770 13 770 -
- 379 838 838 -
- (4 326) 6 940 6 940 -
- (4 052) 6 929 6 929 -
- (274) 11 11 -
- - - - -
- - - - -
- -
- - - - -
- (7 251) 102 859 102 718 141
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
99.8% 87 701 84 059
99.7% 54 172 53 608
100.0% 33 524 30 446
100.0% 5 5
100.0% 1 172 422
100.0% 34 34
- - -
- - -
- - -
- - -
100.0% 750 -
100.0% 388 388
100.0% 13 199 13 199
100.0% 9 673 9 673
100.0% 3 487 3 487
- - -
- - -
- 39 39
- - -
99.9% 102 072 97 680
Programme 3: RURAL DEVELOPMENT
Adjusted
Appropriation
R'OOO
Sub programme
3.1 Rural Development Co-Ordination 1 190
3.2 Social Facilitation 805
Total for sub programmes 1 995
Economic classification
Current payments 1 995
Compensation of employees 1 748
Salaries and wages 1 453
Social contributions 295
Goods and services 247
Administrative fees -
Advertising -
Minor assets -
Audit costs: External -
Bursaries: Employees -
Catering: Departmental activities -
Communication 27
Computer services -
Consultants: Business and -
advisory services
Infrastructure and planning -
services
Laboratory services -
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Shifting of Virement Final Actual Variance
Funds Appropriation Expenditure
R'OOO R'OOO R'OOO R'OOO R'OOO
- (17) 1 173 1 089 84
- 17 822 802 20
- - 1 995 1 891 104
- - 1 995 1 891 104
- (122) 1 626 1 542 84
106 (122) 1 437 1 411 26
(106) - 189 131 58
- 122 369 349 20
2 7 9 9 -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- (15) 12 - 12
- - - - -
- - - - -
- - - - -
- - - - -
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
92.8% - -
97.6% - -
94.8% - -
94.8% - -
94.8% - -
98.2% - -
69.3% - -
94.6% - -
100.0% - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
Appropriation per economic classification
Adjusted
Appropriation
R'OOO
Transport provided: Departmental -
activity
Travel and subsistence 220
Rental and hiring -
Interest and rent on land -
§:i Transfers and subsidies
-
Provinces and municipalities -
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and international -
organisations
Public corporations and private -
enterprises
Non-profit institutions -
Households -
Payments for capital assets -
Buildings and other fixed structures -
Machinery and equipment -
Heritage assets -
Biological assets -
Intangible assets -
Payments for financial assets -
Total 1 995
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Shifting of Virement Final Actual Variance
Funds Appropriation Expenditure
R'OOO R'OOO R'OOO R'OOO R'OOO
- - - - -
(2) 130 348 340 8
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - 1 995 1 891 104
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
- - -
97.7% - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
94.8% - -
3.1 Rural Development Co-Ordination
Adjusted
Appropriation
Economic classlflcatlon R'OOO
Current payments 1190
Compensation of employees 1 055
Goods and services 135
Interest and rent on land -
� Transfers and subsidies -
Provinces and municipalities -
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and international -
organisations
Public corporations and private -
enterprises
Non-profit institutions -
Households -
Payments for capital assets -
Buildings and other fixed structures -
Machinery and equipment -
Heritage assets -
Biological assets -
Intangible assets -
Payments for financial assets -
Total 1190
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
(17) 1173 1 089
(139) 916 832
122 257 257
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
(17) 1173 1 089
Variance
R'OOO
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
84 92.8% - -
84 90.8% - -
- 100.0% - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
84 92.8% - -
3.2 Social Facilitation
Adjusted
Appropriation
Economic classification R'OOO
Current payments 805
Compensation of employees 693
Goods and services 112
Interest and rent on land -
ffi Transfers and subsidies -
Provinces and municipalities -
Departmental agencies and accounts -
Higher education institutions -
Foreign governments and international -
organisations
Public corporations and private -
enterprises
Non-profit institutions -
Households -
Payments for capital assets -
Buildings and other fixed structures -
Machinery and equipment -
Heritage assets -
Biological assets -
Intangible assets -
Payments for financial assets -
Total 805
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Shifting of
Funds
R'OOO
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
APPROPRIATION STATEMENT
for the year ended 31 March 2016
2015/16
Virement Final Actual
Appropriation Expenditure
R'OOO R'OOO R'OOO
17 822 802
17 710 710
- 112 92
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
17 822 802
Variance
R'OOO
2014/15
Expenditure Final Actual
as% of final Appropriation expenditure
appropriation
% R'OOO R'OOO
20 97.6% - -
- 100.0% - -
20 82.1% - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
20 97.6% - -
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE APPROPRIATION STATEMENT
for the year ended 31 March 2016
1. Detail of transfers and subsidies as per Appropriation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure
notes and Annexure 1 (A-H) to the Annual Financial Statements.
2. Detail of specifically and exclusively appropriated amounts voted (after Virement):
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual
Financial Statements.
3. Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note on Payments for
financial assets to the Annual Financial Statements.
4. Explanations of material variances from Amounts Voted (after Virement):
4.1 Per programme
Final Actual Variance
Programme Appropriation Expenditure R'OOO
R'OOO R'OOO R'OOO
Programme 1: Administration 372 124 341 761 30 363
Programme 2: Agriculture 1 918 360 1 855 535 62 825
Programme 3: Rural
Development 1 995 1 891 104
Variance as a
% of Final
Aooropriation
R'OOO
8.16
3.27
5.21
This under-spending for Programme 1: Administration is mainly due to the following:
R1 .646 million under Compensation of employees as a result of the moratorium on
filling posts until the matching and placing of existing staff into the new organisational
structure is finalised.
R 12.168 million under Goods and services, in respect of the migration from Novell to
Microsoft not being finalised as anticipated.
R955 OOO under Transfers and subsidies relates to the fact that the payment to Public
Service SETA did not materialise as this payment is now managed at a national level.
R15.594 million relates to Machinery and equipment, mainly as a result of vehicles
ordered but not delivered of R5.023 million, as well as the delay in the migration from
Novell to Microsoft resulting in the server not being acquired as planned, amounting to
R10.571 million."
This under-spending for Programme 2: Agriculture can largely be attributed to the following:
R1 .877 million under Compensation of employees as a result of the moratorium on filling
posts until the matching and placing of existing staff into the new organisational structure
is finalised.
164 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE APPROPRIATION STATEMENT
for the year ended 31 March 2016
R10.276 million under Goods and services in respect of animal feed and medicines
ordered but not delivered and paid for by 31 March 2016. This includes additional fodder
for drought relief to small scale and subsistence farmers.
R19.873 million under Transfers and subsidies is mainly against Transfers and subsidies
to: Public corporations and private enterprises in respect of Communal Estates which is
the consolidation of adjacent parcels of land into viable farming units and the
establishment of commercial farming operations by the land owners in partnership with
government and possibly investors or neighbouring commercial farmers due to limited
farming activities, as a result of the drought, as well as slow progress on the Nyonende
Hatchery project. The department only transfers funds based on progress made and
previous tranches being fully utilised and accounted for.
R30.799 million under Payment for capital assets, mainly relates to Buildings and other
fixed structures as a result of slower than anticipated implementation of drought relief
interventions such as boreholes, stock watering dams and dip tanks due to high demand
and short supply for service providers due to drought amounting to R27.733 million. The
funds were fully committed by year-end and service providers are on site. Also as a
result of vehicles ordered but not delivered of R3.066 million.
This under-expenditure for Programme 3: Rural Development is largely in respect of
Compensation of employees and related costs in respect of vacant posts
4.2 Per economic classification
Economic classification
Current payments
Compensation of employees
Goods and services
Interest and rent on land
Transfers and subsidies
Provinces and municipalities
Departmental agencies and
accounts
Public corporations and private
enterprises
Non-profit institutions
Households
Payments for capital assets
Buildings and other fixed structures
Machinery and equipment
Heritage assets
Biological assets
Intangible assets
Payments for financial assets
Final Actual
Appropriation Expenditure
R'OOO R'OOO
914 999 911 392
849 268 826 804
227 227
1 313 1 313
102 269 101 306
131 956 112 091
13 770 13 770
18 488 18 488
200 421 172 688
58 799 40 139 - -
350 350 - -
619 619
165 Annual Report_2015/16
Variance Variance
as a% of
Final
Appropriat
ion
R'OOO R'OOO
3 607 0.39
22 464 2.65 - -
- -
963 0.94
19 865 15.05
- -
- -
27 733 13.84
18 660 31.74 - -
- -
- -
- -
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE APPROPRIATION STATEMENT
for the year ended 31 March 2016
Compensation of employees was marginally under-spent by R3.604 million of the
Final Appropriation, due to the moratorium on filling posts until the migration to the
new organisational structure has been completed.
Goods and services reflects under-expenditure of R22.479 million of the Final
Appropriation, mainly as a result of the following:
• Migration from Novell to Microsoft not being finalised.
• Farming supplies for livestock fodder not delivered so not paid for by year
end.
• Animal medicine that was ordered but not delivered or paid for by year-end.
Transfers and subsidies reflects under-expenditure of R20.828 million of the Final
Appropriation, mainly as a result of the following:
Departmental agencies and accounts reflects under-spending of R963 OOO of the
Final Appropriation. This relates to the fact that the payment to Public Service SETA
did not materialise as this payment is now managed at a national level.
Public corporations and private enterprises was under-spent by R19.865 million of
Final Appropriation, due to limited farming activities by the Communal Estates as a
result of the drought, as well as slow progress of the Nyonende Hatchery project. The
department only transfers funds based on progress made and previous tranches
being fully utilised and accounted for.
Payments for capital assets reflects under-expenditure of R46.397 million of the Final
Appropriation, mainly as a result of the following:
• Buildings and other fixed structures reflects under-spending of R27.733
million of the Final Appropriation. This under-spending relates to the dip
tanks, boreholes and stock watering dams, which progressed slower than
anticipated, as already mentioned above.
• Machinery and equipment shows under-spending of R18.660 million relating
to the IT server and vehicles ordered but not delivered.
4.3 Per conditional grant Final Actual Variance Variance as a
Appropriation Expenditure % of Final
Aooropriation
R'OOO R'OOO R'OOO R'OOO
Comp Agricultural Support Programme 226 161 226 161 - -
llima/ Letsema Project 69 401 69 401 - -
Land Care 10 666 10 666 - -
EPWP Incentive qrant for Provinces 2 296 2 296 - -
Conditional Grants 100% spent
166 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3 STATEMENT OF FINANCIAL PERFORMANCE
for the year ended 31 March 2016
REVENUE
Annual appropriation Departmental revenue Aid assistance
TOTAL REVENUE
EXPENDITURE
Current expenditure
Compensation of employees Goods and services Interest and rent on land Aid assistance Total current expenditure
Transfers and subsidies
Transfers and subsidies
Total transfers and subsidies
Expenditure for capital assets
Tangible assets Intangible assets Total expenditure for capital assets
Payments for financial assets
TOTAL EXPENDITURE
SURPLUS/(DEFICIT) FOR THE YEAR
Reconciliation of Net Surplus/(Deficit) for the year
Voted funds Annual appropriation
Departmental revenue and NRF Receipts Aid assistance SURPLUS/(DEFICIT) FOR THE YEAR
Note
1
2
3
4
5
6
3
8
9
9
7
13
3
167 Annual Report_2015/16
2015/16
R'OOO
2 292 479 23 712
2 482
2 318 673
911 393 826 800
227 2 768
1 741 188
246 9691
246 969
213 3051
213 305
619 2 202 081
116 592
93 292 93 292 I
23 712 (412)
116 592
2014/15
R'OOO
2 131 046 32 267
2 163 313
851 046 714 125
171 1 410
1 566 752
219 1161
219 116
215 178
3 408 2 004 454
158 859
128 002 128 002 I
32 267 (1 410)
158 859
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ASSETS
Current assets
Cash and cash equivalents Receivables
Non-current assets
Receivables
TOT AL ASSETS
LIABILITIES
Current liabilities
STATEMENT OF FINANCIAL POSITION
for the year ended 31 March 2016
Note
10
11
11
Voted funds to be surrendered to the Revenue Fund 12
Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 13
Payables 14
Aid assistance repayable
TOTAL LIABILITIES
NET ASSETS
Represented by:
Recoverable revenue
TOTAL
168 Annual Report_2015/16
2015/16
R'OOO
132 454
127 460 14 994
2 101
2 101 I
134 555
133 509
132 192
1 092 225
133 509
1 046
1 046 I
1 046
I
2014/15
R'OOO
90 907
71 254119 653
2 075
2 075 I
92 982
92 468
88 002
3 492 562 412
92 468
514
514 I
514
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
Recoverable revenue
Opening balance
Transfers:
STATEMENT OF CHANGES IN NET ASSETS
for the year ended 31 March 2016
Note 2015/16
R'OOO
514
532
Debts recovered (included in departmental
receipts) (696)
1 228 Debts raised
Closing balance 1 046
TOTAL 1 046
169 Annual Report_2015/16
2014/15
R'OOO
1 289
(775)
(1 652)
877
514
514
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
CASH FLOW STATEMENT
for the year ended 31 March 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts
Annual appropriated funds received
Departmental revenue received
Interest received
Aid assistance received
Net (increase )/decrease in working capital
Surrendered to Revenue Fund
Current payments
Interest paid
Payments for financial assets
Transfers and subsidies paid
Net cash flow available from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets
Proceeds from sale of capital assets
Net cash flows from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
lncrease/(decrease) in net assets
Net cash flows from financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Note
1.1
2
2.3
3
6
15
9
2.4
10
170 Annual Report_2015/16
2015/16 R'OOO
2 354 250 2 331 379
20 362
27
2 482
14 296
(114 114)
(1 741 031)
(157)
(619)
(246 969)
265 656
(213 305)
3 323
(209 982)
532
532
56 206
71 254
127 460
2014/15 R'OOO
2 112 719 2 091 046
21 304
369
(17 902)
(68 573)
(1 566 644)
(108)
(3 408)
(219 116)
236 968
(215 178)
10 594
(204 584)
(775)
(775)
31 609
39 645
71 254
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ACCOUNTING POLICIES
for the year ended 31 March 2016
Summary of significant accounting policies
The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated.
The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.
Where appropriate and meaningful, additional information has been disclosed to enhance the
usefulness of the financial statements and to comply with the statutory requirements of the Public
Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury
Regulations issued in terms of the PFMA and the annual Division of Revenue Act.
1 Basis of preparation
The financial statements have been prepared in accordance with the Modified Cash
Standard.
2 Going concern
The financial statements have been prepared on a going concern basis.
3 Presentation currency
Amounts have been presented in the currency of the South African Rand (R) which is also
the functional currency of the department.
4 Rounding
Unless otherwise stated financial figures have been rounded to the nearest one thousand
Rand (R'OOO).
5 Foreign currency translation
Cash flows arising from foreign currency transactions are translated into South African
Rands using the exchange rates prevailing at the date of payment I receipt.
6 Comparative information
6.1 Prior period comparative information
Prior period comparative information has been presented in the current year's financial
statements. Where necessary figures included in the prior period financial statements have
been reclassified to ensure that the format in which the information is presented is consistent
with the format of the current year's financial statements.
6.2 Current year comparison with budget
A comparison between the approved, final budget and actual amounts for each programme
and economic classification is included in the appropriation statement.
171 Annual Report_2015/16
7
7.1
7.2
7.3
8
8.1
8.1.1
8.1.2
8.2
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ACCOUNTING POLICIES
for the year ended 31 March 2016
Revenue
Appropriated funds
Appropriated funds comprises of departmental allocations as well as direct charges against
the revenue fund (i.e. statutory appropriation).
Appropriated funds are recognised in the statement of financial performance on the date the
appropriation becomes effective. Adjustments made in terms of the adjustments budget
process are recognised in the statement of financial performance on the date the
adjustments become effective.
The net amount of any appropriated funds due to / from the relevant revenue fund at the
reporting date is recognised as a payable/ receivable in the statement of financial position.
Departmental revenue
Departmental revenue is recognised in the statement of financial performance when received
and is subsequently paid into the relevant revenue fund, unless stated otherwise.
Any amount owing to the relevant revenue fund at the reporting date is recognised as a
payable in the statement of financial position.
Accrued departmental revenue
Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the
notes to the financial statements when:
• it is probable that the economic benefits or service potential associated with thetransaction will flow to the department; and
• the amount of revenue can be measured reliably .
The accrued revenue is measured at the fair value of the consideration receivable.
Accrued tax revenue (and related interest and / penalties) is measured at amounts
receivable from collecting agents.
Expenditure
Compensation of employees
Salaries and wages
Salaries and wages are recognised in the statement of financial performance on the date of
payment.
Social contributions
Social contributions made by the department in respect of current employees are recognised
in the statement of financial performance on the date of payment.
Social contributions made by the department in respect of ex-employees are classified as
transfers to households in the statement of financial performance on the date of payment.
Other expenditure
Other expenditure (such as goods and services, transfers and subsidies and payments for
capital assets) is recognised in the statement of financial performance on the date of
payment. The expense is classified as a capital expense if the total consideration paid is
more than the capitalisation threshold.
172 Annual Report_2015/16
8.3
8.4
8.4.1
8.4.2
9
9.1
9.2
10
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ACCOUNTING POLICIES
for the year ended 31 March 2016
Accrued expenditure payable
Accrued expenditure payable is recorded in the notes to the financial statements when the
goods are received or, in the case of services, when they are rendered to the department.
Accrued expenditure payable is measured at cost.
Leases
Operating leases
Operating lease payments made during the reporting period are recognised as current
expenditure in the statement of financial performance on the date of payment.
The operating lease commitments are recorded in the notes to the financial statements.
Finance leases
Finance lease payments made during the reporting period are recognised as capital
expenditure in the statement of financial performance on the date of payment.
The finance lease commitments are recorded in the notes to the financial statements and are
not apportioned between the capital and interest portions.
Finance lease assets acquired at the end of the lease term are recorded and measured at
the lower of:
• cost, being the fair value of the asset; or
• the sum of the minimum lease payments made, including any payments made to acquire
ownership at the end of the lease term, excluding interest.
Aid Assistance
Aid assistance received
Aid assistance received in cash is recognised in the statement of financial performance when
received. In-kind aid assistance is recorded in the notes to the financial statements on the
date of receipt and is measured at fair value.
Aid assistance not spent for the intended purpose and any unutilised funds from aid
assistance that are required to be refunded to the donor are recognised as a payable in the
statement of financial position.
Aid assistance paid
Aid assistance paid is recognised in the statement of financial performance on the date of
payment. Aid assistance payments made prior to the receipt of funds are recognised as a
receivable in the statement of financial position.
Cash and cash equivalents
Cash and cash equivalents are stated at cost in the statement of financial position.
Bank overdrafts are shown separately on the face of the statement of financial position.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on
hand, deposits held, other short-term highly liquid investments and bank overdrafts.
173 Annual Report_2015/16
11
12
13
14
15
16
16.1
16.2
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ACCOUNTING POLICIES
for the year ended 31 March 2016
Prepayments and advances
Prepayments and advances are recognised in the statement of financial position when the
department receives or disburses the cash.
Prepayments and advances are initially and subsequently measured at cost.
Prepayments are expensed when expenditure has been incurred.
Loans and receivables
Loans and receivables are recognised in the statement of financial position at cost plus
accrued interest, where interest is charged, less amounts already settled or written-off.
Investments
Investments are recognised in the statement of financial position at cost.
Impairment of financial assets
Where there is an indication of impairment of a financial asset, an estimation of the reduction
in the recorded carrying value, to reflect the best estimate of the amount of the future
economic benefits expected to be received from that asset, is recorded in the notes to the
financial statements.
Payables
Loans and payables are recognised in the statement of financial position at cost.
Capital Assets
Immovable capital asset
Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.
Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R 1 .
Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end
of the capital project unless the immovable asset is recorded by another department in which
case the completed project costs are transferred to that department.
Movable capital assets
Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.
Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R 1.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R 1 .
174 Annual Report_2015/16
16.3
17
17.1
17.2
17.3
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ACCOUNTING POLICIES
for the year ended 31 March 2016
Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end
of the capital project unless the movable asset is recorded by another departmenUentity in
which case the completed project costs are transferred to that department.
Intangible assets
Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.
Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.
Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R 1 .
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R 1.
Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end
of the capital project unless the intangible asset is recorded by another department/entity in
which case the completed project costs are transferred to that department.
Provisions and Contingents
Provisions
Provisions are recorded in the notes to the financial statements when there is a present legal
or constructive obligation to forfeit economic benefits as a result of events in the past and it is
probable that an outflow of resources embodying economic benefits or service potential will
be required to settle the obligation and a reliable estimate of the obligation can be made. The
provision is measured as the best estimate of the funds required to settle the present
obligation at the reporting date.
Contingent liabilities
Contingent liabilities are recorded in the notes to the financial statements when there is a
possible obligation that arises from past events, and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not within the
control of the department or when there is a present obligation that is not recognised
because it is not probable that an outflow of resources will be required to settle the obligation
or the amount of the obligation cannot be measured reliably
Contingent assets
Contingent assets are recorded in the notes to the financial statements when a possible
asset arises from past events, and whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events not within the control of the
department
175 Annual Report_2015/16
17.4
18
19
20
21
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ACCOUNTING POLICIES
for the year ended 31 March 2016
Commitments
Commitments are recorded at cost in the notes to the financial statements when there is a
contractual arrangement or an approval by management in a manner that raises a valid
expectation that the department will discharge its responsibilities thereby incurring future
expenditure that will result in the outflow of cash
Unauthorised expenditure
Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:
• approved by Parliament or the Provincial Legislature with funding and the related fundsare received; or
• approved by Parliament or the Provincial Legislature without funding and is written offagainst the appropriation in the statement of financial performance; or
• transferred to receivables for recovery.
Unauthorised expenditure is measured at the amount of the confirmed unauthorised
expenditure.
Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.
Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery.
Fruitless and wasteful expenditure receivables are measured at the amount that is expected
to be recoverable and are de-recognised when settled or subsequently written-off as
irrecoverable.
Irregular expenditure
Irregular expenditure is recorded in the notes to the financial statements when confirmed.
The amount recorded is equal to the value of the irregular expenditure incurred unless it is
impracticable to determine, in which case reasons therefor are provided in the note.
Irregular expenditure is removed from the note when it is either condoned by the relevant
authority, transferred to receivables for recovery or not condoned and is not recoverable.
Irregular expenditure receivables are measured at the amount that is expected to be
recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
Changes in accounting policies, accounting estimates and errors
Changes in accounting policies that are effected by management have been applied
retrospectively in accordance with MCS requirements, except to the extent that it is
impracticable to determine the period-specific effects or the cumulative effect of the change
in policy. In such instances the department shall restate the opening balances of assets,
liabilities and net assets for the earliest period for which retrospective restatement is
practicable.
Changes in accounting estimates are applied prospectively in accordance with MCS
requirements.
Correction of errors is aoolied retrospectively in the period in which the error has occurred in
176 Annual Report_2015/16
22
23
24
25
26
27
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
ACCOUNTING POLICIES
for the year ended 31 March 2016
accordance with MCS requirements, except to the extent that it is impracticable to determine
the period-specific effects or the cumulative effect of the error. In such cases the department
shall restate the opening balances of assets, liabilities and net assets for the earliest period
for which retrospective restatement is practicable.
Events after the reporting date
Events after the reporting date that are classified as adjusting events have been accounted
for in the financial statements. The events after the reporting date that are classified as non
adjusting events after the reporting date have been disclosed in the notes to the financial
statements.
Departures from the MCS requirements
Management has concluded that the financial statements present fairly the department's
primary and secondary information; that the department has complied with the Standard.
Capitalisation reserve
The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior
reporting period but which are recognised in the statement of financial position for the first
time in the current reporting period. Amounts are recognised in the capitalisation reserves
when identified in the current period and are transferred to the National/Provincial Revenue
Fund when the underlying asset is disposed and the related funds are received
Recoverable revenue
Amounts are recognised as recoverable revenue when a payment made in a previous
financial year becomes recoverable from a debtor in the current financial year. Amounts are
either transferred to the National/Provincial Revenue Fund when recovered or are
transferred to the statement of financial performance when written-off.
Related party transactions
A related party transaction is a transfer of resources, services or obligations between the
reporting entity and a related party. Related party transactions are recorded in the notes to
the financial statements when the transaction is not at arm's length.
Inventories (Effective from 1 April 2017)
At the date of acquisition, inventories are recorded at cost price in the notes to the financial
statements
Where inventories are acquired as part of a non-exchange transaction, the cost of inventory
is its fair value at the date of acquisition.
Inventories are subsequently measured at the lower of cost and net realisable value or the
lower of cost and replacement value.
177 Annual Report_2015/16
1.
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016
Annual Appropriation
1.1 Annual Appropriation
2015/16 2014/15
Final Actual Funds not Final Appropriation
Appropriation fund requested Appropriation received
received I not
received
Programmes R'OOO R'OOO R'OOO R'OOO R'OOO Administration 372 124 372 124 334 211 334 211 Agriculture 1 918 360 1 957 260 (38 900) 1 796 835 1 756 835 Rural Development 1 995 1 995 Total 2 292 �z9 2 331 319 (38 900) 2 131 0�6 2 091 0�6
The excess of R38.9 million is equitable share received from Provincial Treasury in error. This amount relates to the suspension made in the second adjustments estimate in 2014/15 and re-allocated in 2015/16 during the Adjustments Estimate. The amount was transferred twice by Provincial Treasury.
1.2 Conditional grants
2.
Total grants received Provincial grants included in total grants received
All conditional grants were received
Departmental revenue
Tax revenue Sales of goods and services other than capital assets Interest, dividends and rent on land Sales of capital assets Transactions in financial assets and liabilities
Total revenue collected Less: Own revenue included in appropriation Departmental revenue collected
Note
30
Note
2.1
2.3
2.4
2.5
13
2015/16
R'OOO 308 524
2015/16
R'OOO
18 720 27
3 323 1 642
23 712
23 712
2014/15
R'OOO 319 760
2014/15
R'OOO
19 520 369
10 594 1 784
32 267
32 267
The significant reduction in departmental revenue is mainly in respect of Sale of capital assets. The decrease under this category is due to the fact that the 2014/15 amount of R10.594 million comprises the proceeds from the auction of redundant assets for 2013/14 and 2014/15 financial years due to the 2013/14 proceeds only being received in 2014/15.
178 Annual Report_2015/16
2.1
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Sales of goods and services other than capital assets
Note 2015/16
2 R'OOO
Sales of goods and services produced by the department 18 717
Sales by market establishment 3 312 Administrative fees 26 Other sales 15 379
Sales of scrap, waste and other used current goods 3 Total 18 720
2014/15
R'OOO
19 518
3 325 5
16 188
2 19 520
The reduction in 2015/16 is attributable to fewer soil samples submitted for analysis by farmers due to the severe drou ht conditions.
2.2 Interest, dividends and rent on land Note
2
2015/16
R'OOO
27
2014/15
R'OOO
369 Interest
Total
2.3 Sale of capital assets
Tangible assets
Machinery and equipment
Biological assets
Total
Note
2
27.2127.2
27 369
2015/16 2014/15
R'OOO R'OOO
3 323 10 594
31931130
10 3661228
3 323 10 594
The 2014/15 amount of R10.366 million includes the proceeds from the auction held at end of 2013/14 but only received by the department in 2014/15, as well as proceeds of auction held in 2014/15.
2.4 Transactions in financial assets and liabilities
Receivables Other Receipts including Recoverable Revenue Total
179
Note
2
Annual Report_2015/16
2015/16
R'OOO 592
1 050 1 642
2014/15
R'OOO 737
1 047 1 784
3.
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Aid assistance
Note 2015/16
R'OOO
Opening Balance 412 Prior period error As restated 412 Transferred from statement of financial performance (412) Closing Balance
2014/15
R'OOO
1 822
1 822
(1 410) 412
The department received funding from the World Health Organisation for funding of the rabies elimination programme in the province.
3.1 Analysis of balance by source
Aid assistance from RDP Closing balance
3.2 Analysis of balance
Aid assistance repayable Closing balance
4. Compensation of employees
4.1 Salaries and Wages
Basic salary Performance award Service Based Compensative/circumstantial Periodic payments Other non-pensionable allowances Total
Note
3
Note
2015/16
R'OOO
2015/16
R'OOO
2015/16
R'OOO
635 094 9 332 1 571 9 472
795 125 036 781 300
14.1 The increase in expenditure relates to the annual cost of living wage adjustment.
180 Annual Report_2015/16
2014/15
R'OOO
412 412
2014/15
R'OOO
412 412
2014/15
R'OOO
597 091 8 727 1 808
11 435 4 961
110 282 734 304
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
4.2 Social contributions
Note 2015/16 2014/15
R'OOO R'OOO
Employer contributions
Pension 80 917 75 670
Medical 48 975 40 866
UIF
Bargaining council 201 206
Total 130 393 116 742
Total compensation of employees 911 393 851 046
Average number of employees 2 902 2 901
I 4.2 The increase to medical aid is in line with the wage agreement
5. Goods and services Note 2015/16 2014/15
R'OOO R'OOO
Administrative fees 2 070 77
Advertising 5 846 9 440
Minor assets 5.1 5 804 4 350
Bursaries (employees) 1 451 793
Catering 1 336 2 990
Communication 34 984 40 538
Computer services 5.2 58 362 40 996
Consultants: Business & adv. services 2 042 2 724
Infrastructure and planning services 75 474 74 728
Laboratory services 53 54
Legal services 1 668 1 987
Contractors 44 672 72 742
Agency & supporVoutsourced services 14 315 1 076
Audit cost- external 5.3 5 245 4 389
Fleet services 34 716 35 507
Inventory 5.4 296 467 176 157
Consumables 5.5 58 860 56 595
Operating leases 29 283 25 647
Property payments 5.6 64 253 61 045
Rental and hiring 60 355
Transport provided as part of dept. activities 281 282
Travel and subsistence 5.7 71 771 78 053
Venues and facilities 873 6 686
Training and development 7 162 8 040
Other operating expenditure 5.8 9 752 8 874
Total 826 800 714 125
181 Annual Report_2015/16
5. 1
5.2
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
The increase is mainly under the Inventory item and relates to the farming supplies such as
livestock fodder and water harvesting equipment acquired to combat the effect of the severe
drought.
Minor assets Note 2015/16 2014/15
5 R'OOO R'OOO
Tangible assets 5 840 4 350
Biological assets 2 043 569
Machinery and equipment 3 761 3 781
Total 5 804 4 350
The biological assets are acquired on a needs basis and hence the fluctuations from year to
year.
Computer services Note 2015/16 2014/15
5 R'OOO R'OOO
SITA computer services 47 930 39 951
External computer service providers 10 432 1 045
Total 58 362 40 996
External computer services relate to provision of IT support for Extension Recovery
Services
5.3 Audit cost - External Note 2015/16
R'OOO
2014/15
R'OOO
Regularity audits
Total
5 5 245
5245
I The audit costs are in line with the audit fees agreed to with the Auditor-General
182 Annual Report_2015/16
4 389
4389
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
5.4 Inventory
Clothing material and accessories
Farming supplies
Food and food supplies
Fuel, oil and gas
Learning, teaching and support material
Materials and supplies
Medical supplies
Medicine
Total
Note
5
2015/16
R'OOO
5 790
251 255
2
2 733
1 792
4 264
595
30 036
296 467
2014/15
R'OOO
4 863
139 717
6 076
1 619
5 501
523
17 858
176 157
Department's drought relief intervention is evident against the item Farming supplies in
2015/16 and relates to animal feed and fodder acquired.
5.5 Consumables
Consumable supplies
Uniform and clothing
Household supplies
Building material and supplies
IT consumables
Other consumables
Stationery, printing and office supplies
Total
5.6 Property payments
Municipal services
Property maintenance and repairs
Other
Total
5.7 Travel and subsistence
Local
Foreign
Total
Note
5
Note
5
Note
5
2015/16
R'OOO 50 828
14
3 150
38 027
9 637
8 032
58 860
2015/16
R'OOO
26 774
36 839
640
64253
2015/16
R'OOO
70 863
908
71 771
2014/15
R'OOO
48 475
16
2 388
38 994
94
6 983
8 120
56 595
2014/15
R'OOO
23 490
36 818
737
61 045
2014/15
R'OOO
77 638
415
78 053
Decrease in 2015/16 can be ascribed to the continued implementation of cost cutting
measures.
183 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
5.8 Other operating expenditure Note
5
2015/16
R'OOO
2014/15
R'OOO
6.
7.
7.1
7. 2
Professional bodies,
subscription fees
Resettlement costs
Other
Total
Interest and rent on land
Interest paid
Rent on land
Total
membership
Payments for financial assets
Other material losses written off
Debts written off
Total
Other material losses written off
Nature of losses
Salary related deductions
&
Irrecoverable Fruitless and Wasteful Expenditure
Total
Debts written off
Nature of debts written off Irrecoverable staff debts written off
Total
Note
Note
7
Note
7
Note
7
9 752
9 75 2
2015/16
R'OOO
157
70
227
2015/16
R'OOO
208
411
619
2015/16
R'OOO
208
208
2015/16
R'OOO
411
411
640
649
7 585
8 874
2014/15
R'OOO
108
63
171
2014/15
R'OOO
933
2 475
3 4 08
2014/15
R'OOO
933
933
2014/15
R'OOO
2 475
2475
In terms of Section 6.3.5 of the Debt Management Policy; possible write-offs should firstly be
identified. All reason-able steps should have been taken to recover the debt. A submission
should be prepared with recommendation and supporting documentation to the accounting
officer who will approve that the debt be removed from BAS. Funds to write-off the debt
against must be identified.
184 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
8. Transfers and subsidies 2015116
R'OOO
Note
Provinces and municipalities 30, 31 1 313
Departmental agencies and accounts Annex 18 101 306
Public corporations and private enterprises Annex 10 112 091
Non-profit institutions Annex 1F 13 770
Households Annex 1G 18 488
Total 246 968
9. Expenditure for capital assets Note 2015116
R'OOO
Tangible assets 213 305
Buildings and other fixed structures 9.1 172 689
Machinery and equipment 9.1 40 266
Biological assets 9.1
350
Intangible assets
Software
Total 213 305
9.1 Analysis of funds utilised to acquire capital assets - 2015116
Voted funds Aid
assistance
R'OOO R'OOO
Tangible assets 213 179 126
Buildings and other fixed
Dstructures 172 689
Machinery and equipment 40 140
Biological assets 350
Total 213 179 126
2014115
R'OOO
1 237
108 351
91 962
5 300
12 267
219 117
2014115
R'OOO 215 139
182 814
32 181
144
39
39 I
215 178
Total
R'OOO
213 305
172 689
40 266
350
213 305
The slight decrease in 2015/16 under buildings and other fixed structures is as a result of the planned number of
stock watering dams and new dip tanks not being completed and paid for by 31 March 2016.
185 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
9.2 Analysis of funds utilised to acquire capital assets - 2014/15
Voted funds Aid
assistance
R'OOO R'OOO
Tangible assets 215 139
Buildings and other fixed structures 182 814
Machinery and equipment 32 181 Biological assets 144
Intangible assets 39
Software 39 I Total 215 178
10. Cash and cash equivalents Note 2015/16
R'OOO
Consolidated Paymaster General Account 127 700 Cash receipts 1 Disbursements (277) Cash on hand 36 Total 127 460
11. Receivables
Note Current Non- Total Current Non-
Current Current
R'OOO R'OOO R'OOO R'OOO R'OOO
Claims recoverable 11.1 4 043 118 4 161 19 072 Recoverable 11.2 203 expenditure Staff debt 11.3 445 1 116 1 559 325 1 293 Other debtors 11.4 506 867 1 375 53 782 Total 4 994 2 101 7 095 19 653 2 075
Note 2015/16
11.1 Claims recoverable
11 R'OOO
National departments 1 619 Provincial departments 2 542 Total 4 161
186 Annual Report_2015/16
Total
R'OOO 215 139
182 814
32 181
144
39
39 I 215 178
2014/15
R'OOO
71 568 2
(352) 36
71 254
Total
R'OOO
19 072 203
1 618 835
21 728
2014/15
R'OOO
190 18 882 19 072
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
11.2 Recoverable expenditure (disallowance accounts)
Note 2015/16
11 R'OOO
Salary Tax Debt
Total
11.3 Staff debt Note 2015/16
11 R'OOO
Staff overpayments and Salary Tax Debts 1 284
T&S Debts 267
Bursary Debts 8
Total 1 559
11.4 Other debtors
Note 2015/16
11 R'OOO
Salary Income Tax 3 Salary Insurance Deductions
Salary Pension Fund 6
Supplier Debts 1 366
Total 1 375
11.5 Impairment of receivables
Note 2015/16
11 R'OOO
Estimate of impairment of receivables 302
Total 302
12. Voted funds to be surrendered to the Revenue Fund
Note 2015/16
R'OOO
Opening balance 88 002
As restated 88 002
Transfer from statement of financial performance
(as restated) 93 292 Voted funds not requested/not received 1.1 38 900
Paid during the year {88 002}
Closing balance 132 192
2014/15
R'OOO
203
203
2014/15
R'OOO
1 321
272
25
1 618
2014/15
R'OOO
5
33
797
835
2014/15
R'OOO
646
646
2014/15
R'OOO
39 647
39 647
128 002
(40 OOO)
{39 647}
88 002
The amount to be surrendered has increased due to the department receiving R38. 9
million more than scheduled due to Provincial Treasury transferring the amount
suspended in 2014/15 twice in 2015/16 as well as department not receiving all the
conditional grant funds aooropriated in 2014/15.
187 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
13. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
Opening balance
As restated
Transfer from Statement of Financial
Performance (as restated)
Paid during the year
Closing balance
14. Payables - current
Clearing accounts
Other payables
Total
14.1 Clearing accounts
Salary ACB Recalls
Disallowance Dishonoured Cheques
Salary Reversal Control
Disallowance Miscellaneous
Revenue payable to EDTEA
Total
14.2 Other payables
Salary Motor Finance
Salary Income Tax
Salary Medical Aid
Total
Note 2015/16 2014/15
Note
14.1
14.2
Note
14
Note
14
R'OOO
3 492
3 492
23 712
(26 112)
1 092
2015/16
R'OOO
225
225
2015/16
R'OOO
180
12
1
32
225
2015/16
R'OOO
R'OOO
151
151
32 267
(28 926)
3 492
2014/15
R'OOO
121
441
562
2014/15
R'OOO
62
12
19
28
121
2014/15
R'OOO
74
258
109
441
188 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
15. Net cash flow available from operating activities
16.
17.
17.1
Net surplus/(deficit) as per Statement of
Financial Performance
Add back non cash/cash movements not
deemed operating activities
(lncrease)/decrease in receivables - current
(Increase )/decrease in prepayments and advances
lncrease/(decrease) in payables - current
Proceeds from sale of capital assets
Expenditure on capital assets
Surrenders to Revenue Fund
Voted funds not requested/not received
Net cash flow generated by operating
activities
Note 2015/16
R'OOO
116 592
149 064
14 633
(337)
(3 323)
213 305
(114 114) 38 900
265 656
Reconciliation of cash and cash equivalents for cash flow purposes
Note 2015/16
R'OOO
Consolidated Paymaster General account 127 700
Cash receipts 1
Disbursements (277)
Cash on hand 36
Total 127 460
Contingent liabilities and contingent assets
Contingent liabilities
Note 2015/16
R'OOO
Liable to Nature
Housing loan guarantees Employees Annex 3A 34
Claims against the department Annex 38 45 246
Intergovernmental payables
(unconfirmed balances) Annex 5 441
Total 45 721
2014/15
R'OOO
158 859
78 109
(15 541)
37
(2 398)
(10 594)
215 178
(68 573) (40 OOO)
236 968
2014/15
R'OOO
71 568 2
(352)
36
71 254
2014/15
R'OOO
349
13 516
1 103
14 968
Housing loan guarantees are being phased out and no new guarantees are being issued.
189 Annual Report_2015/16
18.
19.
19.1
19.2
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Commitments Note 2015/16
R'OOO
Current expenditure
Approved and contracted 181 798
181 798
Capital expenditure
Approved and contracted 99 311
99 311
Total Commitments 281 109
2014/15
R'OOO
37 583
37 583
160 638
160 638
198 221
Included in Current commitments Approved and contracted are commitments longer than
one year.
Accruals and payables not recognised
Accruals 2015/16 2014/15
R'OOO R'OOO
Listed by economic classification
30 Days 30+ Days Total Total
Goods and services 28 765 3 836 32 601 28 311
Capital assets 496 264 760 189
Total 29 261 4 100 33 361 28 500
Note 2015/16 2014/15
R'OOO R'OOO
Listed by programme level
Administration 8 277 8 081
Agricultural Development Service 25 016 20 419
Rural Development 68
Total 33 361 28 500
Payables not recognised
Listed by economic classification
2015/16 2014/15
R'OOO R'OOO
30 Days 30+ Days Total Total
Goods and services 232 232
Interest and rent on land
Capital assets 61 61
Total 293 293
Listed by programme level
Agriculture 293
Total 293
190 Annual Report_2015/16
20.
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Included in the above totals are the Note 2015/16
following: R'OOO
Confirmed balances with departments 34
Confirmed balances with other
government entities
Total 34
Employee benefits
Note 2015/16
R'OOO
Leave entitlement 65 207
Service bonus (Thirteenth cheque) 26 517
Performance awards 14 759
Capped leave commitments 135 859
Other
Total 242 342
I Included in leave entitlement is negative leave of R225k
21. Lease commitments
21.1 Operating leases expenditure
2015/16
Not later than 1 year
Later than 1 year and not
later than 5 years
Total lease commitments
2014/15
Not later than 1 year
Later than 1 year and not
later than 5 years
Total lease commitments
Specialise
d military
equipment
Specialise
d military
equipment
Land
Land
Buildings
and other Machinery
fixed and
structures equipment
13 272 2 734
28 824 2 027
42 096 4 761
Buildings Machinery
and other and
fixed equipment
structures
11 471 2 381
28 192 1 384
39 663 3 765
2014/15
R'OOO
39
39
2014/15
R'OOO
62 508
24 483
14 474
139 863
241 328
Total
16 006
30 851
46 857
Total
13 852
29 576
43 428
Buildings and other fixed structures relates to Office accommodation leased through
Public Works.
191 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
21.2 Finance leases expenditure**
Specialise Land
2015/16 d military
equipment
Not later than 1 year
Later than 1 year and not
later than 5 years
Total lease commitments
Specialise
2014/15 d military
equipment
Not later than 1 year
Later than 1 year and not
later than 5 years
Total lease commitments
Land
Buildings
and other
fixed
structures
Buildings
and other
fixed
structures
Machinery
and
equipment
3 285
2 004
5289
Machinery
and
equipment
2 088
343
2 431
Total
3 285
2 004
5289
Total
2 088
343
2 431
Machinery and equipment relates to Cell phone contracts entered into for 2 year periods
22. Accrued departmental revenue
Sales of goods and services other than capital
assets
Total
22.1 Analysis of accrued departmental revenue
Opening balance
Less: amounts received
Add: amounts recognised
Less: amounts written-off/reversed as
irrecoverable
Closing balance
Note
Note
192 Annual Report_2015/16
2015/16
R'OOO
8 180
8180
2015/16
R'OOO
5 784
10 037
12 632
199
8180
2014/15
R'OOO
5 784
5 784
2014/15
R'OOO
8 208
12 181
9 796
39
5 784
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
22.2 Accrued department revenue written off
Nature of losses Outstanding Laboratories fees Total
23. Irregular expenditure
23.1 Reconciliation of irregular expenditure
Opening balance Prior period error As restated Add: Irregular expenditure - relating to current year Less: Prior year amounts condoned Less: Amounts not condoned and recoverable Less:Amounts not condoned and not recoverable Closing balance
Analysis of awaiting condonation per age
classification
Current year Prior years Total
Note
Note
2015/16
R'OOO
199 199
2015/16
R'OOO
42 041
42041
34 167
9 856 66 352
34 167132 185 66 352
2014/15
R'OOO
39 39
2014/15
R'OOO
151 764 {2 024}
149 740
17 544 124 020
18 1 205
42 041
17 360 24 681 42 041
Provincial Treasury continued the exercise of reconciling the disclosures in the departments
register and investigating each case with the department. Provincial Treasury reviewed each
case individually by inspecting payment documents where information was insufficient to
make recommendations the case was referred back to the department for further
investigation. Cases where the recommendation was not to condone, were consolidated as a first charge against the departments.
193 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
23.2 Details of irregular expenditure - current year
Incident
Single source
Sole service provider
3 quotes not received, more than 3 requested
Month to month contracts
Non-compliance with delegations
Price variation
Total
Disciplinary steps
taken/criminal
proceedings
2015/16
2 278
23
755
28 878
2149
84 34167
The largest portion of irregular expenditure identified related to expired security services
contracts.
23.3 Details of irregular expenditure not recoverable (not condoned)
Incident Not condoned by (condoning
authority)
Competitive bidding
process not followed
Total
23.4 Details of irregular expenditures under investigation (not included
on main note)
Incident
Quotes not received(3 or more requested)
Quotes not requested
Month to Month Contracts
No Contracts
Single source
Use of prohibited suppliers
Competitive bidding process not followed
No order
Supplier restricted
No supporting docs
Splitting of orders
Delegations not adhered to
Fraudulent payment
Overpayment to supplier
Preferred supplier unable to deliver
Conflict of interest
Variations in terms of Reference
Total
194 Annual Report_2015/16
2015/16
9 856
9 856
2015/16
R'OOO
646
2 527
18 655
502
99
372
4 232
15
1 654
447
643
969
500
296
183
13
432
32185
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
23.5 Prior period error Note
23
Nature of prior period error
Misclassification 2013/14 and prior
Relating to 2013/14Month to month lease contract 2014/15Total
24. Fruitless and wasteful expenditure
24.1 Reconciliation of fruitless and wasteful expenditure
Opening balancePrior period errorAs restatedFruitless and wasteful expenditure - relating toprior yearFruitless and wasteful expenditure - relating tocurrent yearLess: Amounts resolvedFruitless and wasteful expenditure awaiting
resolution
Note 2015/16 R'OOO
1 455
1 455
17
166208
1 430
24.2 Analysis of awaiting resolution per economic classification 2015/16
R'OOO
CurrentTotal
24.3 Analysis of Current year's fruitless and wasteful expenditure
1 4301 430
Incident Disciplinary steps taken/criminal
proceedings
Interest on Overdue AccountsLate Registration Fee No show: Accommodation FeesTotal
Investigations are currently being undertaken into each transaction and officialsrequested to provide explanations for each case
195 Annual Report_2015/16
2014/15
R'OOO
�2 024� 2 024 I
(1 840)
2014/15
R'OOO 1 121
1 121
334
1 455
2014/15
R'OOO 1 4551 455
2015/16
R'OOO
15718
166
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
24.4 Details of fruitless and wasteful expenditure under investigation (not in the main note)
Incident
Interest on overdue account Service fees no show2 Cancelation fees Late Registration fees Damages to hired vehicles No show: accommodation fees Late cancellation of fees Used building lease Late booking surcharge Total
25. Related Party Transactions
In kind goods and services provided/received
The following are related parties to the Department:
Mjindi Farming (Pty) Ltd
Agricultural Development Agency
Ntingwe Tea (Pty)Ltd
Note
2015/16 R'OOO
247
2 109
1 103
57 651
17 77
1 264
2015/16
R'OOO
Refer to Annexure 1 B, 1 D,2A and 28 for details of transactions with the above entities
26. Key management personnel
No. of
Individuals
2015/16 2014/15
R'OOO R'OOO
Political office bearers (provide detail below) 1 1 902 1 928
Officials:
Level 15 to 16 6 8 074 5 580
Level 14 (incl. CFO if at a lower level) 9 7 446 5 718
Total 17 422 13 226
196 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
27. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE
YEAR ENDED 31 MARCH 2016
Opening Value and Additions Disposals Closing
balance Adjustments Balance
R'OOO R'OOO R'OOO R'OOO
MACHINERY AND
EQUIPMENT 508 023 46 847 9 203 545 667
Transport assets 140 320 19 492 8 990 150 822
Computer equipment 96 555 13 846 213 110 188
Furniture and office
equipment 18 399 1 439 19 838
Other machinery and
equipment 252 749 12 070 264 819
BIOLOGICAL
ASSETS 1 171 1 393 623 268 2 919
Biological assets 1 171 1 393 623 268 2 919 I
TOTAL MOVABLE
TANGIBLE CAPITAL
ASSETS 509194 1 393 47 470 9 471 5 48 586
197 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
27 .1 Additions
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER
FOR THE YEAR ENDED 31 MARCH 2016
Cash* Non- {Capital Work Received
cash** in Progress current,
current costs not paid
and finance {Paid
lease current
payments) year,
received
prior
year)
R'OOO R'OOO R'OOO R'OOO
MACHINERY AND
EQUIPMENT 36 801 10 046
Transport assets 17 896 1 596
Computer equipment 12 877 969
Furniture and office 614
equipment 825
Other machinery and 6 867
equipment 5 203
BIOLOGICAL ASSETS
350 273
Biological assets 350 273
TOTAL ADDITIONS TO
MOVABLE TANGIBLE
CAPITAL ASSETS 37151 10 319
198 Annual Report_2015/16
Total
R'OOO
46 847
19 492
13 846
1 439
12 070
62 3
623 I
47 470
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
27 .2 Disposals
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016
MACHINERY AND
EQUIPMENT
Transport assets Computer equipment
BIOLOGICAL ASSETS
Biological assets
TOT AL DISPOSAL OF
MOVABLE TANGIBLE
CAPITAL ASSETS
27.3 Movement for 2014/15
Sold for Non Total cash Cash disposals
disposal
R'OOO R'OOO R'OOO
8 990 213 9 203 8 990 8 990
213 213
268 268 268 268
9 258 213 9 471
Cash
Received
Actual
R'OOO
3 193 3 19
� I
130 130 I
3 323
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER
FOR THE YEAR ENDED 31 MARCH 2015
Opening Prior Additions Disposals Closing
balance period Balance
error
R'OOO R'OOO R'OOO R'OOO R'OOO
MACHINERY AND
EQUIPMENT 502 072 (1 548) 42 387 34 888 508 023
Transport assets 145 670 335 25 789 31 474 140 320 Computer equipment 93 587 (495) 5 977 2 514 96 555 Furniture & office equipment 17 235 337 1 182 355 18 399 Other machinery & equipment 245 580 (1 725) 9 439 545 252 749 BIOLOGICAL ASSETS 1 476 305 1 171
Biological assets 1 476 305 1 171
TOT AL MOVABLE
TANGIBLE CAPITAL
ASSETS 503 548 (1 548) 42 387 35 193 509 194
199 Annual Report_2015/16
I
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
27.3.1 Prior period error Note
Nature of prior period error
Machinery and Equipment adj
TOTAL
27.4 Minor assets
2014/15
R'OOO
(1 548)
(1 548)
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2016
Specialised Intangible Heritage Machinery Biological Total
military assets assets and assets assets equipment
R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO
Opening bal 56 24 989 6 706 31 751
Value adj. 121 1 682 1 803
Additions 1 265 49 1 314
Disposals 21 2 377 2 398
TOTAL
MINOR ASSETS 56 26 354 6 060 32 470
Specialised Intangible Heritage Machinery Biological Total
military assets assets and assets assets equipment
R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO
Number of R1 minor assets 25 888 25 888
Number of
minor assets at cost 18 758 3 617 22 375 TOTAL NUMBER OF MINOR 44 646 3 617 48 263 ASSETS
200 Annual Report_2015/16
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED
AS AT 31 MARCH 20 15
Specialised Intangible Heritage Machinery Biological Total
military assets assets and assets
assets equipment
R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO
Opening
balance 56 24 415 8 182 3 2 653
Additions 1 645 1 645
Disposals 1 071 1 47 6 2547
TOTAL
MINOR
ASSETS 56 2 49 89 6 706 31 75 1
Specialised Intangible Heritage Machinery Biological Total
military assets assets and assets
assets equipment
R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO
Number of
R1 minor
assets 26 338 26 338
Number of
minor assets
at cost 18 217 4 1 41 22 358
TOTAL NUMBER OF MINOR ASSETS 44555 4 1 41 48 696
Annual Report_2015/16
DEPARTMENT OF A GR/CULTURE AND RURAL DEVELOPMENT
VOTE3
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
28. Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR
ENDED 31 MARCH 2016
SOFTWARE
TOTAL INTANGIBLE CAPITAL ASSETS
28.1 Movement for 2014/15
Opening
balance
R'OOO
2 803
2 803
Value Additions Disposals
Adjustment
R'OOO R'OOO R'OOO
Closing
Balance
R'OOO
2 803
2 803
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR
ENDED 31 MARCH 2015
SOFTWARE
TOTAL INTANGIBLE
CAPITAL ASSETS
Opening
balance
R'OOO
2 764
2764
202
Prior
period
error
R'OOO
Additions Disposals
Annual Report_2015/16
R'OOO
39
39
R'OOO
Closing
Balance
R'OOO
2 803
2 803
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
VOTE3
28.2 Additions
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER
FOR THE YEAR ENDED 31 MARCH 2016
Cash
R'OOO
BUILDING & OTHER FIXED 172 688 STRUCTURES
Dwellings Non-residential buildings 172 688 Other fixed structures
TOTAL ADDITIONS TO
IMMOVABLE TANGIBLE
CAPITAL ASSETS 172 688
29. Prior period errors
29.1 Correction of prior period errors
Expenditure: Nature of prior year
Misclassification 2013/14 and prior year
Relating to 2014/15
Month to month lease contract 2014/15
Net effect
Non-cash
R'OOO
(Capital Work in
Progress
current
costs and
finance
lease
payments)
R'OOO
(172688)
(172688)
(172 688)
Received current,
not paid
(Paid
current
year,
received
prior
year)
R'OOO
Total
R'OOO
: I
R'OOO
(2 024)
184
(1 840)
Expenditure: R-2024 - Provincial Treasury recommendation was that this was incorrectly classified. R 184 - Month to month rental payment in 2014/15.
Assets: Nature of prior year error: Machinery and Equipment adjustment
Net effect
Note 2014/15
R'OOO
(1 548)
(1 548)
Assets: The Adjustment to the Movable Capital Assets as a result of errors identified on the Asset Register that were corrected during the 2015/16 financial year.
203 Annual Report_2015/16
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
30. STATEMENT OF CONDITIONAL GRANTS RECEIVED
GRANT ALLOCATION SPENT
Division of Roll Overs DORA Other Total Amount Amount spent Under /
Revenue Adjustments Adjustments Available received by by department (overspending)
Act/Provincial department NAME OF GRANT Grants
R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO
Land Care 10 666 10 666 10 666 10 666 -
Comp Agricultural Support Programme 226 161 226 161 226 161 226 161 -
llima/ Letsema Project 69 402 (1) 69 401 69 401 69 401 -
EPWP Incentive grant for Provinces 2 296 2 296 2 296 2 296 -
- -
308 525 - - (1) 308 524 308 524 308 524 -
Department has received all funding through Provincial Treasury. All funds were deposited into the department's PMG account.
2014/15
% of available Division of Amount spent
funds spent Revenue Act by department
by dept
% R'OOO R'OOO
100% 10 854 10 854 100% 212 632 212 632 100% 69 093 92 093 100% 4 181 4 181
100% 296 760 319 760
(DEPARTMENT OF A GR/CULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
31. STATEMENT OF CONDITIONAL GRANTS PAID TO MUNICIPALITIES
GRANT ALLOCATION
Division
of
Revenue Roll Total
Act Overs Adjustments Available NAME OF MUNICIPALITY
R'OOO R'OOO R'OOO PD: Vehicles Licences 1 260 - 40 1 300 Mun 8/Acc: Mun Rates & Taxes - - 13 13
1 260 - 53 1 313
The transfers made by the department include only payments for licencing of departmental KZN vehicles and payment for rates for Osca College
TRANSFER
Re-allocations by
National Treasury
or National
Actual Funds Department
Transfer Withheld
R'OOO R'OOO % 1 300 .
13 -
1 313 -
ANNEXURE1B
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS
TRANSFER ALLOCATION
Adjusted
Appropriation Roll Adjustments Total Actual
Overs Available Transfer DEPARTMENT/AGENCY/ACCOUNT
R'OOO R'OOO R'OOO R'OOO
Agri Business Development Agency 99 500 - - 99 500
Com: Licences (Radio & TV) 9 - - 9
Skills Development Levv 2 800 - (40) 2 760
Total 102 309 - (40) 102 269
TRANSFER 2014/15
%of
Available funds
Transferred Appropriation Act
R'OOO % R'OOO
99 500 100% 106 410
1 11% 3
1 805 65% 1 938
101 306 99% 108 351
�
ANNEXURE1D
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVA
TE ENTERPRISES
TRANSFER ALLOCATION EXPENDITURE
Adjusted Roll Overs Adjustments Total Actual % of Available Capital NAME OF PUBLIC appropriation Available Transfer funds CORPORATION/PRIVATE Act transfer
r
ed ENTERPRISE
R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO
Public corporations
Transfers 62 699 . . 62 699 62 699 100.0%
Mjindi Farming 50 506 . . 50 506 50 506 100.0%
lthala Development Finance 12 193 . . 12 193 12 193 100.0%
Sub total: Public corporations 62 699 . . 62 699 62 699 100.0%
Private enterprises
Transfers 37 754 . 31 503 69 257 49 392 71.3%
SA Sugar Research Institute 2 557 . . 2 557 2 544 99.5%
SA Sugar Association - - 27 053 27 053 27 053 100.0%
Donations & Gifts Private Ent 5 - - 5 5 100.0%
Soil Conservation subsidy: - -
Aquason Construction 789 - - 789 789 100.0%
Mvuthshini Estate PTY (LTD) 402 - - 402 402 100.0%
Radley,JH 309 - - 309 309 100.0%
Nyonende Hatchery 8 300 - - 8 300 4 200 50.6%
Communual Estates 25 392 - - 25 392 9 640 38.0%
lnqanawe Tunnel Project - - 4 450 4 450 4 450 100.0%
Sub total: Provate enterprises 37 754 . 31 503 69 257 49 392 71.3%
TOTAL 100 453 . 31 503 131 956 112 091 84.9%
2014/15
Current Appropriation
Act
R'OOO R'OOO
. 62 699 46 607
50 506 46 607
12 193
. 62 699 46 607
. 49 387 7 470
2 544 6 OOO
27 053 1 395
75
789
402
309
4 200
9 640
4 450
. 49 387 7 470
. 112 086 54 077
ANNEXURE1F
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS
TRANSFER ALLOCATION
Adjusted Roll Adjustments Total
Appropriation overs Available
Act
NON-PROFIT INSTITUTIONS R'OOO R'OOO R'OOO R'OOO
Transfers
Zakhe Agricultural College 3 089 - - 3 089
Agricultural schools 10 681 - - 10 681
Total 13770 - - 13 770
EXPENDITURE 2014/15
Actual %of Appropriation
Transfer Available Act
funds
transferred
R'OOO % R'OOO
3 089 100% 750
10 681 100% 5 300
13770 100% 6 050
�
ANNEXURE1G
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF TRANSFERS TO HOUSEHOLDS
TRANSFER ALLOCATION
Adjusted
Appropriation
Act Roll Adjustments Total
HOUSEHOLDS Overs Available
R'OOO R'OOO R'OOO R'OOO
Transfers
Injury on Duty 126 - - 126
Severance Package - - - -
Leave Gratuity 11 183 - 4 069 15 252
Claims Against State 11 - - 11
Bursaries non-employees - - 3 099 3 099
Total 11 320 - 7168 18 488
EXPENDITURE 2014/15
%of
Available Appropriation
Actual funds Act
Transfer Transferred
R'OOO % R'OOO
126 100% 256 - - 588
15 252 100% 11 363
11 100% 60
3 099 100% -
18 488 100% 12 267
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURE 1H
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED
NATURE OF GIFT, DONATION OR
NAME OF ORGANISATION SPONSORSHIP
Received in kind
Department of Agriculture, Forestry & Fisheries Computers and other equipment, library books
Department of Agriculture, Forestry & Fisheries Vehicles, Tractors and implements
Department of Agriculture, Forestry & Fisheries Parkhome clinics, cottages
Total
2015/16 2014/15
R'OOO R'OOO
3 407 7 004
1 937 5453
5 693 -
11 037 12 457
�
ANNEXURE 11
(DEPARTMENT OF A GR/CULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF AID ASSISTANCE RECEIVED
NAME OF DONOR PURPOSE OPENING
BALANCE REVENUE
R'OOO R'OOO
Received in cash
World Health Organisation (Rabies project) Project Implementation 413 2 482
Total 413 2 482
CLOSING
EXPENDITURE BALANCE
R'OOO R'OOO
2 895 -
2 895 -
�
ANNEXURE1J
(DEPARTMENT OF A GR/CULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AS AN ACT OF GRACE
NATURE OF GIFT, DONATION OR SPONSORSHIP
(Group major cateaories but list material items includina name of oraanisation
Made in kind
Token of appreciation at Service Excellence Awards - Mesrrs Brian and Siphumelel
10 Cattle - Nxamalala Event in lmpendle
2 Sheep - Israel Spiritual Church
3 Cattle - Maphumulo Traditional Council
2 Cattle - Willowfontein Rural horse Riding Club
1 Bull - Sakhubunye Livestock Co-Operative
10 Cattle - lsimahla Traditional Council
1 Cow - Departmental Sports Day
Goats - king at Expo Msinga
Livestock for Community Project meeting at lnanda
Livestock for Stakeholder's meeting at Chesterville
Sheep for Fire victims, 3 families in Kokstad
6 Cattle for President's visit to lmpendle
5 Cattle for the Kings Wedding
Made in Cash
50th Anniversary fundraising dinner - Edendale Lay Ecumenical centre
Summerhill Zulu dancers International trip
Sponsorship for lndoni Cultural Festival - lndoni S.A.
TOTAL
2015/16 2014/15
R'OOO R'OOO
2
50
1
9
8
5
27
4
50
4
5
3
18
23
5 - 75 - 100
161 228
ANNEXURE2A
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITIES
Number of shares Net Asset value of held Cost of investment investment
R'OOO R'OOO State Entity's % %
Name of Public PFMA Held Held Entity Schedule type YY/ZZ XX/YY 2015/16 2014/15 2015/16 2014/15 2015/16 2014/15
National/Provincial Public Entity
Mjindi Farming Schedule 3D 100 100 100 100 8 757 8 757 54 249 50 295
(Proorietorv) Limited
Total 100 100 100 100 8 757 8 757 54249 50 295
Profit/(Loss) for Losses
the year guarantee
R'OOO d
2015/16 2014/15 Yes/No
(8 933) 16 530 No
(8 933) 16 530
ANNEXURE 2B
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO ENTITIES (CONTINUED)
Net Asset value of Cost of investment Investment
R'OOO R'OOO
Name of Public
Amounts owing to Entities
R'OOO
Entity Nature of business 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 Controlled entities
Ntingwe Tea (Pty)Ltd This is the joint venture 1 1 (85 026) (71 546) - -
between the Department
of Agriculture and lthala
Development Finance
Corporation Ltd, whose
main purpose is to
provide funding investing
and establishing a viable
commercial tea business
in Northern KwaZulu
Natal. The company is the
holding company of
Ntingwe Farming (Pty) Ltd
- the operating company.
Department of Agriculture
owns 62% of the shares
in Ntingwe Tea (Pty)Ltd
and lthala owns 38%Totall 1 1 (85 026) (71 546) - -
Amounts owing by Entities
R'OOO
31/03/2016 31/03/2015
- -
- -
ANNEXURE3A
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2016- LOCAL
Original Opening Guarantees Guarantees Revaluations
guaranteed balance draw repayments/
capital 1 April downs cancelled/
Guarantee amount 2015 during the reduced/
in year released
respect of during the
Guarantor Housing year
institution R'OOO R'OOO R'OOO R'OOO R'OOO
Standard Bank 92 92 - 92 -
Firstrand Bank Pty Ltd 35 35 - 35 -
ABSA 145 145 - 111 -
Nedbank Limited 29 29 - 29 -
Old Mutual 48 48 - 48 -
Total 349 349 - 315 -
Closing Guaranteed Realised
balance interest for losses not
31 March year ended recoverable
2016 31 March i.e. claims
2016 paid out
R'OOO R'OOO R'OOO
- - -
- - -
34 - -
- - -
- - -
34 - -
ANNEXURE3B
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016
Opening Liabilities
Nature of Liability Balance incurred
during the 1 April 2015 year
R'OOO R'OOO
Claims against the department
Accidental Claims 1 157 897
Damage to property 8 496 -
Goods and Services 3 568 33 823
Lease Agreement Dispute 3
General Claims 291 165
TOTAL 13 515 34 885
Liabilities Liabilities Closing
paid/cancell recoverable ed/reduced (Provide Balance
during the details 31 March year hereunder) 2016
R'OOO R'OOO R'OOO
537 - 1 157
69 - 8 427
2 532 - 34 859
3 -
-
13 - 443
3 154 - 45 246
Matters carried over from previous financial years are as a result of pending issues such as awaiting further instruction/and or pleadings/or supporting
documentation and/or trial dates. Reductions to the values are due to settlement being reached/matters withdrawn/matters prescribed. The increase from 2014/15
is due to a substantial claim instituted against the department in relation to an alleged contractual dispute.
ANNEXURE4
CLAIMS RECOVERABLE
Government Entity
Department
National Dept Agriculture, Forestry
and Fisheries
Economic Development
Dept of Arts and Culture
KZN: Human Settlement
KZN: Public Works
COGTA
TOTAL
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Confirmed balance Unconfirmed balance outstanding outstanding Total
31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015
R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO
715 - 904 190 1 619 190
2 396 13 093 - 5 638 2 396 18 731 - - 118 - 118 -
22 135 - - 22 135
6 - - - 6 -
- 16 - - - 16
3 139 13 244 1 022 5 828 4 161 19 072
Cash in transit at year end 2015/16 *
Receipt date up to
six (6) working
days after year end Amount
R'OOO
- -
05/04/2016 249 - -
- -
- -
- -
249
ANNEXURE5
INTER-GOVERNMENT PAYABLES
Confirmed balance
outstanding
GOVERNMENT ENTITY
31/03/2016
R'OOO DEPARTMENTS
Current
Dept. of Transport
Dept. of Works
Mineral Resources
Premier
KZN Health
Government Printing
Works Subtotal
Non-current KZN: Arts & Culture National School of Government National Agricultural, Land and Rural Development
Subtotal
Total
(DEPARTMENT OF A GR/CULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Unconfirmed balance outstanding TOTAL
31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015
R'OOO R'OOO R'OOO R'OOO R'OOO
31 - 38 1 099 69 1 099 - - 113 - 113 -
- 24 - - - 24 - 7 - - - 7
3 8 - 4 3 12 - - 11 - 11 -
34 39 162 1 103 196 1 142
- - 75 - 75 -
- - 143 - 143 -
- - 61 - 61 -
- - 279 - 279 -
34 39 441 1 103 475 1 142
Cash in transit at year end 2015/16 *
Payment date up to six (6) working days
before year end Amount R'OOO
31/03/2016 32
31/03/2016 6,979 -
-
-
31/03/2016 15
7 026
-
-
-
-
7 026
ANNEXURE 6
INVENTORIES
Inventory
Opening balance
Add/(Less): Adjustments to prior year balance
Add: Additions/Purchases - Cash
Add: Additions - Non-cash
(Less): Disposals
(Less): Issues
Add/(Less): Adjustments
Closing balance
(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)
VOTE3
ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2016
Note Quantity
-
-
-
-
-
-
-
-
2015/16
R'OOO
11 354 -
1 679 -
-
(11 354) -
1 679
Quantity 2014/15
R'OOO - 10 184 -
- 11 354 -
-
- (10 184)
- 11 354
ANNEXURE 7
MOVEMENT IN CAPITAL WORK IN PROGRESS
MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2016
Opening Current Completed Closing
balance Year Assets balance
Capital
WIP
R'OOO R'OOO R'OOO R'OOO
BUILDINGS AND OTHER FIXED STRUCTURES 315 150 172 688 487 838
Dwellings
487 8381 Non-residential buildings 315 150 172 688
Other fixed structures
TOTAL 315150 172 688 487 838
MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2015
Opening Current Completed Closing
balance Year Assets balance
Capital
WIP
R'OOO R'OOO R'OOO R'OOO
BUILDINGS AND OTHER FIXED STRUCTURES 132 336 182 814 315 150
Dwellings
315 150 I Non-residential buildings 132 336 182 814
Other fixed structures
TOTAL 132 336 182 814 315 150
220 Annual Report_2015/16
www.kzndard.gov.za